UK Contractors’ All Risks Insurance Quotes
Contractors’ All Risks Insurance
Cover for construction and contracting risks, bringing contract works, materials, owned and hired-in plant together, with liability and wider commercial covers potentially arranged alongside.
Why compare CAR cover here?
- Cover contract works, materials and plant, with liability arranged alongside
- Built for construction, civil engineering, electrical and M&E contractors
- Owned and hired-in plant, temporary works and multiple project sites
What is Contractors' All Risks insurance?
Contractors' All Risks insurance, often referred to as CAR insurance, is designed for risks associated with construction and contracting work. Depending on the policy, cover can include contract works, materials, owned or hired-in plant and other project-related risks, with liability and additional commercial covers potentially arranged alongside it.
Contractors face risks across the whole life of a project. Work in progress and the materials waiting to become part of it can be damaged before completion, construction sites expose the business to fire, theft, flood, storm and vandalism, and owned or hired-in plant, tools and equipment can be lost or damaged on site or in transit. Temporary works, third-party injury or property damage, employees and several contracts running at once each add their own exposure.
A Contractors' All Risks policy brings these project-related risks together in one arrangement, with Public Liability and, where the business employs staff, Employers' Liability commonly placed alongside the contract works protection. The precise sections, exclusions and limits depend on the insurer and the policy selected, so the wording of the individual policy determines exactly what is covered.
Related commercial cover
How Contractors' All Risks insurance works
Describe the business
Set out the contracting work carried out, annual turnover, employees and wage roll, the value of owned and hired-in plant, tools and equipment, and the typical, largest and annual contract values. Accurate answers bring back sharper quotes from the broker panel.
Compare specialist quotes
Your details reach brokers who rate construction and contracting risks every working day. They price contract works, plant, tools, liability and the other exposures against the real project profile rather than a generic template.
Set the cover up
Settle on the arrangement that suits the business: a standalone Contractors' All Risks policy, or a Commercial Combined policy bringing contract works, plant, liability, property and business interruption together on one renewal date.
What Can Contractors' All Risks Insurance Cover?
Contractors' All Risks insurance can cover the works being built, the materials for them, the plant used to carry them out and the liabilities that sit alongside a construction project, subject to the policy. Terminology and policy structures vary between insurers, so the sections below are the elements a Contractors' All Risks arrangement may bring together rather than a fixed list every policy always includes. What appears on any given schedule follows the projects, plant, workforce and contracts of the individual contractor.
The works being carried out under a contract, the permanent and temporary works being built and the materials for them, against physical loss or damage up to completion. Contract works is usually the core of a Contractors' All Risks policy, subject to the policy wording and limits.
Materials intended to become part of the works, such as building materials delivered to a site, covered against loss or damage depending on the arrangement, up to the point they are built into the completed works.
Plant and machinery belonging to the business, such as excavators, dumpers, telehandlers and generators, insured against damage, theft and other insured events while on site or in transit, subject to the policy.
A key consideration for contractors hiring expensive plant. This can pick up contractual responsibility for physical damage to hired-in machinery, along with the continuing hire charges that run under the hire conditions, depending on the arrangement.
Hand tools, power tools and site equipment the business works with, covered against loss, theft and damage where included, whether kept at the yard, in the van or out on a site.
Formwork, falsework, scaffolding, propping and other temporary works put up to build the permanent works, covered depending on the policy and the project.
Certain claims from third parties for injury or property damage arising from the site works, which may be arranged alongside the contract works protection. Commercial and main-contractor work often sets the limit before you can start on site.
Where the contractor employs staff, this answers injury and illness claims brought by the people carrying out the work, and is a legal requirement in many circumstances. Labour-only subcontractors usually count as employees for this cover.
Contractors' All Risks and Commercial Combined Insurance
For an established contracting company the insurance requirement can extend far beyond a single construction project. A commercial combined arrangement may bring Contractors' All Risks exposures together with the wider business covers a contractor carries, so contract works, owned and hired-in plant, liabilities, property, stock and business interruption sit under one policy rather than a stack of separate products. The sections below are the elements insurers typically bring together in a combined policy for that kind of company, subject to the insurer and the individual risk.
Commercial Property
Your office, workshop, yard or storage premises, along with the contents and business equipment kept there, insured against fire, theft, escape of water and storm, subject to the policy.
Employers' Liability
Required by law from the day you take on staff, this answers injury or illness claims brought by the people who carry out your contracts, on site and at client premises. Labour-only subcontractors usually count as employees.
Public Liability
Covers certain claims from third parties for injury or property damage arising from your site works, on your own premises or at a client's site, and is often written at £5m or £10m to meet contract conditions.
Products Liability
Answers certain claims arising from goods, materials, fittings or components your business supplies or installs that later cause injury or damage once they are in use.
Stock
The materials your business holds for its contracts, such as building materials, fittings and components kept at your premises or ready for a job, covered against loss or damage while in your care, subject to the policy.
Owned and Hired-in Plant
Plant and machinery the business owns, covered for damage and theft, along with the contractual responsibility that comes with hired-in plant and its continuing hire charges, subject to the policy.
Business Interruption
Steps in when a fire, flood or other insured event halts the business, replacing lost turnover and meeting ongoing overheads such as wages while the company gets its premises and equipment back into use.
Contract Works
Protects the works being carried out under a contract while they are in progress, against fire, storm, theft and accidental damage up to completion, subject to policy terms. This is usually the core of a Contractors' All Risks policy.
Because a combined policy is assembled around the way the company works, the sections above are chosen to match your activities, workforce, plant and contracts rather than bought piecemeal, subject to the insurer and the risk. Compare commercial combined insurance for contractors through FCA-regulated UK brokers.
Who needs it
Who Needs Contractors' All Risks Insurance?
Contractors' All Risks insurance is arranged for businesses carrying out construction and contracting work, from main contractors and building firms to civil engineering, groundworks, electrical, mechanical and specialist trades. It is frequently a contractual requirement on commercial projects, so the companies below tend to hold it where they run contracts, employ people, use plant and carry project-related risk.
Construction and contracting
Construction companies
Contractors' All Risks insurance is arranged for established construction and contracting businesses, from firms running a handful of projects to companies working across multiple sites and contracts at once. Cover is built around the works, materials, plant and liabilities each project carries rather than a fixed list.
- Contract works
- Owned and hired-in plant
- Liabilities
- Higher limits
Lead contractor
Main contractors
Firms taking overall responsibility for a project, coordinating trades and subcontractors, where the contract commonly requires contract works and liability cover in place before work starts.
Building contractors
General building firms carrying out new build, extensions and structural work, with materials, works and plant at risk on each site.
Civil engineering companies
Businesses delivering infrastructure, roads, foundations and structural works, often with high-value plant and larger contracts to allow for.
Groundworks contractors
Contractors preparing sites, digging foundations and laying drainage and services, with excavation exposures and site plant to cover.
Trade
Electrical contractors
Electrical firms working on commercial installations and larger contracts, where the works, materials and liability all sit within the project cover on site.
Building services
M&E contractors
Mechanical and electrical contractors delivering building services, HVAC and controls on larger projects, carrying works, plant and liability exposures together.
Engineering contractors
Engineering firms building and installing plant, structures and systems on site, with works and equipment exposures on each contract.
Property developers
Developers running construction and refurbishment projects, with substantial value tied up in the works and materials before completion.
House builders
Residential builders constructing new homes and developments, with works, materials and plant at risk across multiple plots.
Interiors
Fit-out contractors
Firms fitting out offices, retail and commercial interiors, where the works and installed materials carry real value until the job is handed over.
Retail
Shopfitters
Contractors fitting out shops and retail units, installing joinery, fixtures and finishes that form part of the works on site.
On site
Specialist subcontractors
Specialist trades working as subcontractors on construction projects and commercial fit-outs, where the main contractor sets the liability limits, contract works and site requirements the job runs to.
Run an established electrical contracting company? Compare electrical contractors insurance quotes and set your cover against the size of the firm, its contracts, its equipment and the work it takes on.
Owned plant and hired-in plant insurance.
Plant cover splits into two distinct exposures. Owned plant is equipment that belongs to the business, while hired-in plant is equipment the business has hired and may carry contractual responsibility for. That difference matters, because hired-in plant can bring both physical damage to the item and continuing hire charges that keep running while it is out of action, and each is treated differently in the policy. Cover for either is not automatic and depends on the insurer and on what has been declared.
Plant the business owns, from accidental damage, fire, breakdown, loss or theft, at the yard or depot and while in transit or in use on site. A sum insured set against the value of the owned plant puts the company in a position to repair or replace it, subject to the policy wording. The maximum plant value held at any one location is a figure insurers weigh when pricing the cover.
- Cover basisValue of the plant
- What is insuredOwned equipment
- Responds toDamage and theft
Plant the business does not own can still leave it on the hook. Under the hire conditions, the contractor may carry responsibility for physical damage to the item and for continuing hire charges that keep running while it is repaired or replaced. That second element can be the larger part of the loss, which is why the maximum hired-in exposure is a separate figure insurers look for. Cover for hired-in plant is often arranged distinctly, subject to the terms.
- Cover basisHire responsibility
- What is insuredDamage and hire charges
- Responds toContractual liability
Plant that can fall under owned or hired-in cover.
Cover can extend across the range of plant a contractor runs, from earthmoving and lifting machines to power and access equipment. Owned and hired-in items are treated differently, and what can be included depends on the insurer and what has been declared.
Getting plant cover right
Set the sum insured against the value of your owned plant, note the maximum plant value held at any one location and the maximum hired-in exposure, and check how owned and hired-in items are treated, since none of it is automatic. Compare Contractors' All Risks Insurance to cover owned and hired-in plant alongside your other exposures.
What affects the cost of Contractors' All Risks insurance?
What a contracting business pays for Contractors' All Risks cover turns on the shape of its projects, not a single rate card. Annual turnover, the nature of the contracting work, contract values, project duration and location, plant and equipment values, the number of employees and wage roll, subcontractor payments and the claims record all pull the figure one way or the other. A firm running high-value civil engineering contracts with deep excavation and work at height is read very differently from one carrying out small refurbishment projects, so a clear picture up front points the broker straight at the right market.
Put the contracting activities, the turnover, the contract values, the plant and equipment values and the wage roll in front of the broker before any quote is run. No two insurers view construction and contracting risk the same way. Some will not write deep excavation, demolition, work at height or design responsibility, while others write exactly that. A specialist knows which market to approach, so an honest declaration steers you toward a workable quote instead of a decline weeks later.
MMC Contractors All Risks Specialists, FCA-authorised (reg. 916241)
Turnover, employees and wage roll
Annual turnover, the number of employees and the wage roll sit at the heart of the rating, with the number of years trading factored in alongside. More staff on the payroll and a heavier wage bill lift the employers' liability exposure, while turnover signals the scale of contracting work passing through the business each year.
Nature of the contracting work
Exactly what the business builds, installs or refurbishes, and the construction methods it uses, move the number. Groundworks, structural work, demolition and specialist activities each carry their own exposure, so the type of contracting work undertaken sits near the centre of the assessment.
Contract values and project duration
The maximum contract value, the total annual contract value, how long projects run and where they are located all count. Larger, longer and higher-value contracts tie up more works and materials at any one time, so a business running several sizeable projects at once rates differently from one taking on short, low-value jobs.
Work at height and excavation
The maximum working height reached on site and the depth of any excavation both weigh on the price, alongside the construction methods used. Work at height and deep excavation carry exposures a straightforward fit-out does not face, so a business working this way is read differently.
Plant, tools and hired-in equipment
The value of owned plant, the maximum value of hired-in plant and the tools and equipment relied on all feed into the rating. A contractor running excavators, telehandlers and access equipment carries a different exposure from one working mainly by hand, and hired-in plant brings its own contractual responsibility for physical damage and continuing hire charges.
Claims history, subcontractors and limits
Past claims, payments made to labour-only and bona fide subcontractors, and the cover limits a contract insists on all shape the figure. A clean record works in your favour, a run of losses does the opposite, and higher required liability limits lift the exposure the policy has to answer.
No two contracting businesses are rated alike; the number reflects your own activities, contracts, plant and claims. Compare Contractors' All Risks insurance quotes to see how your turnover, contract values, plant and claims shape the cover across our specialist broker panel.
Contractors' All Risks vs Contract Works Insurance
Contractors' All Risks and Contract Works are related but not identical. Contract works is cover for the works themselves, the permanent and temporary works being built under a contract, plus materials, against physical loss or damage up to completion. Contractors' All Risks is a broader construction policy that can bring contract works together with owned and hired-in plant, tools and liability arranged alongside. The table below sets the two side by side.
Contract Works
Cover for the works themselves, the permanent and temporary works being built under a contract, plus materials, against physical loss or damage up to completion. It is usually the core of a Contractors' All Risks policy, though the term is also used for that specific cover.
- Works in progress as the principal focus
- Materials intended to form the works
- Physical loss or damage up to completion
- Plant usually considered separately
- Liability not the primary purpose
Contractors' All Risks
A broader construction and engineering policy that can bring contract works together with owned and hired-in plant, tools and liability arranged alongside. What sits within it depends on the insurer and the arrangement chosen.
- Contract works can be included
- Owned and hired-in plant can be added
- Tools and equipment where included
- Liability may be arranged alongside
- Written for construction and engineering projects
Overlapping terms
The two terms overlap in everyday use. Contract works is often the core of a Contractors' All Risks policy, so the same words can describe either the specific cover or the wider arrangement. The policy wording is what settles it.
- Contract works often the core of CAR
- CAR reaches wider than the works alone
- Materials can feature in both
- Structures vary between insurers
- Not a single fixed definition
| Cover element | Contractors' All Risks | Contract Works |
|---|---|---|
| Works in progress | Can be included | Principal focus |
| Materials | Can be included | Can be included |
| Owned plant | Can potentially be added | Usually considered separately |
| Hired-in plant | Can potentially be added | Usually considered separately |
| Liability | May form part of a wider arrangement | Not the primary purpose |
| Employees (EL) | EL may be arranged alongside | Not the primary purpose |
Terminology and policy structures vary between insurers, so the actual policy wording determines the cover, not the label on the front. Treat the table as a guide to how the two usually relate rather than a fixed rule. Compare Contractors' All Risks Insurance to line up contract works, plant and liability cover for the work you take on.
What is Contract Works insurance?
Contract Works insurance protects the physical works a contractor is building under a contract, together with the materials that will become part of them, against loss or damage before the project is complete. It is usually the core section of a Contractors' All Risks policy, and understanding what it does and does not cover matters to any business carrying the risk of a half-finished project.
Contract Works insurance covers the permanent and temporary works being carried out under a construction contract, along with the materials intended to become part of them, against physical loss or damage up to completion. It answers the risk that a project under construction is damaged before it is handed over, for example by fire, flood, storm, theft or accidental damage. Contract Works is the works cover at the heart of a Contractors' All Risks policy rather than the whole policy: Contractors' All Risks is broader and can bring the works together with owned and hired-in plant, tools and, arranged alongside, liability. The scope, exclusions and limits depend on the insurer and the policy wording.
What the works are
The works are the building or structure being constructed, altered or refurbished under the contract, along with the temporary works needed to carry it out, such as formwork, scaffolding and propping. As a project progresses, more labour, materials and value are built into the works, so the amount at stake grows week by week.
What this covers- Permanent works under construction
- Temporary works on site
- Value built up as the project runs
Materials for the works
Materials cover applies to the goods intended to become part of the finished works, from bricks, timber and steel through to fittings and fixtures, while they are on site or in store awaiting installation. A large refurbishment or new build can hold substantial value in materials long before they are fixed in place.
What this covers- Materials on site awaiting use
- Goods that become part of the works
- Value tied up before installation
Insured damage before completion
If a contractor is constructing or refurbishing a commercial property and insured damage occurs before completion, the exposure is not limited to tools or plant, because substantial value is tied up in the actual works and materials. Reinstating what has been lost can mean redoing weeks of labour as well as replacing the materials themselves.
What this covers- Works damaged part way through
- Labour and materials to reinstate
- Exposure beyond tools and plant
Responsibility for insuring the works depends on the contract and the insurance arrangement. On some projects the contractor insures the works, on others the employer does, and existing structures being worked on are often treated separately again. The scope and exclusions of a Contract Works section also vary between insurers, so the contract terms and the policy wording together decide who carries the risk and what is covered.
Good to know: Contract Works cover varies from one policy to the next, so it has to be read alongside the construction contract rather than assumed. Giving a specialist broker detailed information about the projects undertaken, the contract values, the materials involved and how responsibility for insuring the works is set out in the contract helps them understand the risk and discuss suitable cover and liability limits. MyMoneyComparison.com Ltd is authorised and regulated by the Financial Conduct Authority, FCA registration number 916241.
Contract Works cover is arranged around the projects you actually build. Compare Contractors' All Risks insurance quotes to see how your contract values, materials and works shape the cover across the MyMoneyComparison.com broker panel.
Contractors' All Risks Insurance for Construction Companies
Contractors' All Risks insurance for a construction company brings the works under construction, the materials, owned and hired-in plant and the site liability exposures into a single arrangement, rather than leaving a main contractor to piece cover together contract by contract. A construction company usually runs several sites at once, carries substantial contract values, holds materials on site and relies on plant that is often hired in, and it works through employees and subcontractors on commercial construction, house building and design and build projects. Where a claim is cut back or turned down, the cause sits on a short and familiar list: a contract works exposure the cover was never set up to answer, plant or materials left off the policy, subcontractors never declared, or a liability limit set below what a contract required. Whether a claim is paid in full usually turns on what was declared to the insurer and the cover arranged for the works, the plant and the liabilities, rather than on the day the loss happens.
| Scenario | When the claim is paid in full | When the claim is reduced or declined |
|---|---|---|
| Damage to the works under construction before completion | Paid Contract works cover is in force and the project was declared, so physical loss or damage to the works and materials before completion is answered. | Reduced Where contract works cover was set below the contract value, or the project was never declared, the payout can be cut back and leave a shortfall. |
| Injury or third-party property damage on a live site | Paid Public liability is on cover at the limit the contract required and the site activities were declared, so injury to a third party or damage to neighbouring property is answered. | Declined Where the liability limit was set below what the contract required, or the site activities were never declared, the claim can be reduced or left unanswered. |
| Materials or plant damaged by fire or storm on site | Paid The site, its materials and plant were declared and held within the sums insured, so damage from an insured event on site is answered. | Declined An exposure the insurer was never told about, or values above those declared, can sit outside the terms and leave the loss unanswered. |
| Theft of owned or hired-in plant from a site | Paid Owned and hired-in plant used on site were declared and held within the sum insured, reasonable security was in place, so theft from the site is covered. | Declined The value of plant on site went past the declared limit, or hired-in plant was left off the policy with no cover for continuing hire charges, so a site loss can go unanswered. |
| A subcontractor's work leads to a claim | Paid Labour-only and bona fide subcontractors were declared to the insurer and the arrangement matches the cover, so a claim involving subcontracted work is answered. | Declined Where subcontractors were never declared, or labour-only subcontractors were treated as outside the employers' liability, a claim can be reduced or left unanswered. |
| The contract required a higher liability limit than held | Paid The required limit of £5m or £10m was arranged before work started and the contract's requirements were met, so a large third-party claim is answered in full. | Declined A contract that called for £5m or £10m of public liability against a policy held at a lower limit can leave a shortfall the contractor has to meet. |
A reduced or refused claim for a construction company nearly always comes down to one of a few things: a contract works exposure with no cover behind it, plant or materials left off the policy, subcontractors never declared, or a liability limit set below what a contract required. Giving a specialist broker a full picture of the sites, the contract values, the materials and plant relied on, the subcontractors used and the limits the contracts demand lets them set the cover and limits before anything goes wrong.
Specialist brokers build these outcomes into the cover before anything goes wrong. Compare Contractors' All Risks Insurance quotes to see what sits in the policy as standard and what has to be declared for the works, the contract values and the plant and materials your business relies on. Construction companies can also compare Construction Company Insurance.
What Information Is Needed for a Contractors' All Risks Quote?
A Contractors' All Risks quote is built from your business details, contracting activities, contracts, projects, plant, subcontractors, higher-risk work, professional exposure and claims record. The form opens with annual turnover, segmented into bands of Under £500k, £500k to £999k, £1m to £2.49m, £2.5m to £4.99m, £5m to £9.99m and £10m+, then asks about years trading, employees and wage roll, exactly what contracting work the business undertakes, its typical and largest contract values, the projects it works on and the covers and limits it needs. Gather the details below before you start and a specialist broker can understand the risk accurately with fewer follow-up questions.
Business details and contracting activities
The form opens with the size of the business and exactly what your contracting work involves across the year.
- Annual turnover band, years trading and number of employees
- Annual wage roll across site and office staff
- The contracting and construction activities undertaken
- Whether projects are commercial, residential, industrial or civil engineering
Contracts, projects, plant and subcontractors
Your contract values, the projects you take on, the plant you run and the subcontractors you use set much of the exposure being rated.
- Typical size, largest contract and annual contract value
- Owned plant values and maximum hired-in plant exposure
- Labour-only and bona fide subcontractors
- Maximum working heights, excavation depths and specialist activities
Professional exposure, claims and required cover
Design and advisory work, your claims record and the covers you need complete the picture.
- Whether the business designs, specifies, consults or manages projects
- Previous claims and losses over recent years
- Contract Works, plant, employers' and public liability and other cover
- Current insurance, renewal date, required covers and limits
Contractors' All Risks Insurance for Civil Engineering Companies
Contractors' All Risks insurance for a civil engineering company brings the works under construction, the materials, high-value owned and hired-in plant and the site liability exposures into one arrangement, across groundworks, excavation, drainage, infrastructure, utilities, roads, foundations and structural works. Civil engineering runs to larger contracts, deeper excavations and heavier plant than most building work, so the exposures are higher and the way the works are insured is set out in the contract. Open any heading below to see how Contractors' All Risks fits the way a civil engineering company works and what a broker looks at when arranging cover.
The works, materials and plant on a civil project
On a civil engineering project substantial value sits in the works themselves and the materials for them, long before anything is handed over. Contract Works cover, usually the core of a Contractors' All Risks policy, answers physical loss or damage to the permanent and temporary works and the materials up to completion, subject to the wording and limits.
Owned and hired-in plant, from excavators to rollers, sit alongside the works as their own consideration rather than being assumed within the contract works. A civil engineering company running heavy plant needs both the works and the plant set out clearly for the cover to line up. Compare Contractors' All Risks Insurance to discuss the arrangement.
Groundworks and excavation
Groundworks and excavation carry exposures that lighter trades do not: collapse, damage to the works in progress, and damage to surrounding property and existing structures. The deeper the excavation, the more the risk, which is why a broker asks for maximum excavation depths.
Physical loss or damage to the works under construction can be answered by the Contract Works section, while injury or third-party property damage is a public liability matter arranged alongside. Setting out the excavation and groundworks accurately lets the cover and limits match the work.
Drainage, utilities and infrastructure
Drainage, utilities and infrastructure work often runs across public highways, near live services and over long durations, with the works exposed on site for extended periods. That extends the window in which the works and materials can be damaged before completion.
Contract Works cover can respond to the works and materials during that period, subject to the policy terms. Longer contracts, phased works and work near existing services are the kind of detail a specialist broker goes through when arranging the cover.
Roads, foundations and structural works
Road construction, foundations and structural works involve high contract values and significant plant on site at once. A single insured event, such as fire, storm or flood, can damage a large amount of completed and in-progress work together.
The Contract Works section is built for exactly this kind of physical loss to the works before completion, subject to wording and limits. Declaring the contract values and the maximum value of works and plant at any one site lets the sums insured be set correctly.
High-value owned and hired-in plant
Civil engineering relies on high-value plant: excavators, dumpers, rollers, telehandlers, generators, pumps and specialist equipment, much of it hired in. Owned plant is the equipment the business owns, while hired-in plant is equipment hired under conditions that often make the business responsible for physical damage and continuing hire charges.
Owned and hired-in plant are usually rated as distinct items rather than assumed to fall within the works. The maximum plant value at any one location and the maximum hired-in exposure matter when a broker arranges the cover.
Larger contracts and higher liability limits
Civil engineering contracts, particularly public sector and infrastructure work, run to larger values and frequently set out the liability limits a contractor must hold, commonly £5m or £10m of public liability, before work is awarded.
Employers' liability is legally required where the business employs staff, with a £5m legal minimum, and public and products liability sit alongside the works cover. A commercial combined arrangement can bring these together for an established civil engineering company.
Design responsibility on civil projects
Where a civil engineering company takes on design responsibility, whether under a design-and-build contract or through in-house design, a claim can allege the design, calculations or specification were negligent and caused a client financial loss.
The works, plant and liability covers within a Contractors' All Risks or commercial combined arrangement answer physical damage and injury, not the professional work itself, so professional indemnity is a separate consideration where design responsibility sits with the contractor.
Who insures the works under the contract
On civil engineering projects the contract sets out who insures the works and any existing structures. Standard forms such as JCT and NEC set out whether the employer or the contractor is responsible for insuring the works, and the position varies between contracts.
Checking the contract before work starts shows whether the company relies on a project or employer-arranged policy or needs its own Contractors' All Risks cover for the works. Getting this clear avoids a gap where the works are left uninsured by everyone.
For a civil engineering company the works, the plant and the liabilities all sit within a Contractors' All Risks or commercial combined arrangement, and the contract decides who insures the works. Compare Contractors' All Risks Insurance quotes and set out your groundworks, excavation, plant and contract values so a specialist broker can arrange suitable cover. Civil engineering firms can also compare Civil Engineering Insurance.
Contractors' All Risks Insurance for Larger Contractors
Larger contracting businesses can present significantly different insurance requirements from individual tradespeople. A company with higher annual turnover, directly employed staff, a substantial wage roll and several active contracts running at once carries greater liability, contract, plant and business interruption exposures than a sole trader. Multiple active contracts, higher maximum and annual contract values, owned and hired-in plant, subcontractors, commercial and public-sector clients, work at height, excavation and design responsibilities all point toward higher liability limits and a schedule built around the way the company genuinely works, often a commercial combined arrangement.
Turnover, employees and wage roll
Annual turnover, the number of directly employed staff and a wage roll that climbs as the team grows all shape the risk. Employers' liability is required by law, set at a £5m legal minimum and commonly written at £10m, and labour-only subcontractors usually count as employees for it.
Multiple contracts and contract values
Several active contracts running at the same time, with individual jobs worth more and work won from main contractors and larger clients. The schedule has to answer for the maximum contract value as well as the annual contract value in progress across the business.
Owned and hired-in plant
Owned plant belonging to the business and hired-in plant brought on for particular jobs both sit within the exposure. The schedule weighs the value of the owned plant held at any one location and the maximum hired-in exposure, including responsibility for physical damage and continuing hire charges.
Subcontractors and clients
Labour-only and bona fide subcontractors brought in for particular jobs, and work carried out for commercial clients and under public-sector contracts. How that chain is engaged and who the work is for both drive the public liability limit a larger firm has to hold.
Design responsibilities and higher limits
Take on design, specification or design-and-build, and professional indemnity moves onto the schedule alongside the physical contracting risk. Larger contracts and public-sector work tend to call for higher liability requirements, with limits that climb to £5m or £10m.
Work at height, excavation and claims
Work at height, excavation and other higher-risk activities widen the exposure and shape the information insurers need. A larger firm's previous claims and trading history then sit alongside as part of how the risk is judged and priced.
The larger the operation, the more a single arrangement shaped around it earns its place. Compare Contractors' All Risks Insurance to line up liability limits, plant and contract cover with the way your contracting business genuinely runs.
Contractors' All Risks vs Public Liability Insurance
Public Liability and Contractors' All Risks answer different risks, and one does not replace the other. Public Liability concerns certain claims from third parties for injury or property damage connected with the business. Contractors' All Risks, and the contract works cover at its core, concerns the contractor's own project-related exposures, the works, materials and plant. Because they cover separate things, a larger contractor may need both rather than choosing between them.
Public Liability and Contractors' All Risks are not alternatives, they answer different risks. Compare Contractors' All Risks Insurance and line up project cover alongside the liability your contracts require.
The cover detail shown reflects how UK Contractors' All Risks and Public Liability cover are generally arranged for contracting businesses. It is for illustration only and is not a quotation. Covers, limits and exclusions differ by insurer and by individual circumstances.
Contractors' All Risks for Electrical and M&E Contractors
Contractors' All Risks insurance for electrical and mechanical contractors brings the installation works, the materials and the site plant into one arrangement on larger installation contracts, alongside the liability cover a site demands. As electrical, HVAC (heating and ventilation), mechanical and building services contractors take on bigger fit-outs and commissioning work, the value tied up in the installation before handover grows, and Contractors' All Risks is the site-based cover built for it.
On larger installation contracts, Contract Works cover, usually the core of a Contractors' All Risks policy, responds to physical loss or damage to the installation being carried out and the materials for it before completion and handover. On a construction site the main contractor often arranges a single project or CAR policy, so an electrical or M&E contractor may be covered under it for the works or may need its own contract works cover, and the contract sets out which. Owned and hired-in plant, tools and site materials are separate considerations a broker goes through, and nothing is automatic, so the position needs checking against the policy and the contract.
Electrical and mechanical installations
Contract Works cover protects the installation you are carrying out under a contract, along with the materials for it, against damage or theft while the work is in progress. On electrical and M&E work that covers the cabling, distribution, containment and installed systems before they are completed and handed over, subject to the policy terms.
HVAC and mechanical systems
HVAC plant, pipework, ductwork and mechanical systems installed under a contract carry significant value on site before commissioning. Contractors' All Risks is the wider site-based cover that can bring the works, materials and plant under one arrangement. Compare Contractors' All Risks Insurance to discuss it.
Building services and commercial fit-outs
Building services and commercial fit-out contracts run over longer durations with the works exposed on site throughout. The contract conditions usually set out who insures the works, so checking them before starting shows whether you rely on the main contractor's project policy or need contract works cover of your own.
Owned and hired-in plant
Access equipment, generators, lifting gear and other plant taken onto site can be covered separately from the works. Hired-in plant is often your responsibility to insure under the hire agreement, including continuing hire charges, so owned and hired-in plant are usually rated as distinct items rather than assumed to fall within the works.
Lighting, controls and cabling
Cable, containment, distribution boards, luminaires, controls and other materials stored or being installed on site can be damaged or stolen before the work is completed. Contract Works cover can respond to those materials while they form part of the works, subject to the policy terms and any conditions.
Getting the terminology right
Contract works and Contractors' All Risks are used loosely and can mean different things in different wordings and contracts. Reading what each policy actually covers, and how it lines up with the contract you are working to, avoids a gap where the works are left uninsured by everyone.
For electrical and M&E contractors on larger installation contracts, Contract Works and Contractors' All Risks decide who carries the works if they are damaged before handover. Compare Contractors' All Risks Insurance quotes and set out your installations, plant and site materials so a specialist broker can arrange the right cover. Smaller electrical firms can also compare Electrical Contractors Insurance.
Who insures the works? Contractual responsibility
Who insures the works is decided by the construction contract, not by the insurance policy alone. Standard forms such as JCT and NEC set out whether the employer or the contractor is responsible for insuring the works and any existing structures, so the contract has to be read before cover is arranged. The exact wording varies between forms, editions and projects, so the points below are general rather than a fixed rule.
The contract decides
Responsibility for insuring the works is set by the contract between the parties, not assumed by default. Before a project starts, the contract shows who must arrange Contract Works cover and to what value, which is why the terms are checked at the outset.
JCT arrangements
JCT building contracts set out insurance options for the works, allocating responsibility for insuring new works and, where relevant, existing structures between the employer and the contractor. Which option applies depends on the project and the version of the contract used.
NEC arrangements
NEC engineering and construction contracts also allocate responsibility for insuring the works, often through a schedule that names who insures what. As with JCT, the detail depends on the option chosen and the way the contract is drafted for the project.
New works and existing structures
A refurbishment or extension usually involves both new works and an existing building. Contracts commonly treat these separately, because the party best placed to insure a finished structure may not be the one carrying out the new works.
Employer or contractor
On some projects the employer insures the works and the contractor relies on that arrangement; on others the contractor must insure the works, often in joint names. Knowing which applies avoids a gap where each party assumes the other has arranged the cover.
Check before you rely on it
Because the position turns on the specific contract, it is worth confirming who insures the works, in whose names and for what value before work begins. A specialist broker can help match the cover arranged to what the contract actually requires.
Who insures the works depends on the contract, so the cover has to line up with what the project requires. Compare Contractors' All Risks insurance quotes and set out the contracts you work under so a specialist broker can match the works cover to them.
Specialist Contractors' All Risks Insurance
Comparing Contractors' All Risks insurance since 2013
MyMoneyComparison.com has been helping UK contractors compare Contractors' All Risks cover since 2013. Whether you run a construction company, a civil engineering firm, an electrical or M&E contractor, or a building contractor working across multiple sites, the same specialist broker panel understands contracting risk. Compare Contractors' All Risks insurance from a panel that knows contract works, owned and hired-in plant, employers' and public liability and the full spread of UK construction and contracting exposures.
Why Compare Contractors' All Risks Insurance?
Contracting risks sit a long way apart from one company to the next, so a broker who knows construction and engineering work can talk through cover that actually fits, which is the whole point of comparing. MyMoneyComparison.com is an FCA-regulated comparison and introducer service (FRN 916241); it is not the insurer, it does not underwrite policies and it does not sell them. It takes your details once and hands them to specialist brokers who can read the risk and discuss suitable cover.
Standard business insurance aggregators
Built for off-the-shelf SME cover. Contracting and construction work tends to be flagged as non-standard and either declined outright or squeezed through without the contract works, plant and design detail a proper rating depends on.
Typical limitations- Contract works and site work barely accommodated
- Owned and hired-in plant handled poorly
- Design responsibility and professional exposure omitted
- Work at height, excavation and multiple sites missed
- Established firms and £5m to £10m limits off-panel
Specialist contracting and construction brokers
FCA-regulated brokers who work the construction and contracting market day to day. Contract works, owned and hired-in plant, employers' and public liability and commercial combined cover are talked through against the risk you set out, rather than forced into a fixed template.
Built around contracting and construction- Construction, civil engineering and M&E contractors
- Contract works, materials and site plant
- Owned and hired-in plant across multiple sites
- Design responsibility and professional exposure
- Established firms needing £5m or £10m limits
One electrical contractor's exposure looks nothing like the next, so the fuller the picture you give, the better a specialist can read the risk and talk through cover that suits it. Setting out your electrical activities, tools and equipment, contract values, subcontractor use and claims record from the start helps match you with brokers who write this market, and the Insurance Act 2015 expects a fair presentation of the risk to hold the policy good when a claim is made. MyMoneyComparison.com introduces you to those brokers; it is not the insurer and it neither underwrites nor sells the policy.
Compare Contractors' All Risks insurance with some of the UK's leading commercial and contractor insurers, including:
Specialist Commercial Motor & Fleet Insurance Brokers
Fleet Insurance Brokers
Gauntlet fleet insurance
Specialist Commercial Motor & Fleet Insurance Brokers
Specialist Commercial Motor & Fleet Insurance Brokers
Everything You Need to Know
Clear answers to the questions contractors ask most often about Contractors’ All Risks and contract works insurance.
What is Contractors' All Risks insurance?
Contractors’ All Risks insurance, often called CAR insurance, covers risks associated with construction and contracting work. Depending on the policy, cover can include contract works, materials, owned or hired-in plant and other project-related risks, with liability and additional commercial covers potentially arranged alongside. Sections and limits depend on the insurer and the policy selected.
What does Contractors' All Risks insurance cover?
Cover can include the contract works being undertaken, materials intended to become part of the works, owned plant, hired-in plant, and tools and equipment. Temporary works, Public Liability and Employers’ Liability may be arranged alongside. The exact sections and limits vary between insurers, so the policy wording determines what is covered on any contract.
What does CAR insurance mean?
CAR is short for Contractors’ All Risks. It refers to a construction policy that can bring together the contract works, materials and plant for a project, with liability and other commercial covers potentially arranged alongside. The term describes the type of cover rather than a single fixed product, since structures differ between insurers.
Is Contractors' All Risks insurance the same as Contract Works insurance?
They are related but not identical. Contract Works is the cover for the works themselves, plus materials, against physical loss or damage up to completion, and usually sits at the core of a CAR policy. Contractors’ All Risks is broader, bringing works together with plant and, arranged alongside, liability. Terminology varies between insurers.
Do contractors need Contractors' All Risks insurance?
Many contractors carry it because substantial value can be tied up in works, materials and plant during a project. It is not legally required in the way Employers’ Liability is, but it is frequently a contractual requirement. Whether a contractor needs it depends on the work undertaken, the contracts held and the exposures involved.
Is Contractors' All Risks insurance legally required?
Contractors’ All Risks is generally not legally required, unlike Employers’ Liability, which is a legal requirement where staff are employed. However, CAR or contract works cover is frequently a contractual requirement, since construction contracts often set out who must insure the works. The obligation usually comes from the contract rather than legislation.
Does CAR insurance include Public Liability?
Public Liability can be arranged alongside Contractors’ All Risks, but it is not automatically part of it. PL concerns certain third-party injury or property-damage claims, while CAR concerns the contractor’s own project-related exposures. Policy structures vary between insurers, so whether the two sit within one arrangement depends on how cover is set up.
Does CAR insurance include Employers' Liability?
Employers’ Liability can be arranged alongside Contractors’ All Risks but is not automatically part of it. EL is legally required where staff are employed, generally with a £5m minimum limit of indemnity. Some insurers bring EL, CAR and other covers into one arrangement; others keep them separate. The policy structure determines how it is provided.
Can owned plant be covered?
Owned plant, meaning equipment belonging to the business, can be covered against damage, theft and other insured events. Examples include excavators, dumpers, telehandlers, generators and compressors. The maximum plant value at any one location matters when obtaining a quote. Cover and limits depend on the insurer and the policy selected.
Can hired-in plant be covered?
Hired-in plant can be covered and is a key consideration for contractors hiring expensive equipment. Under hire conditions a contractor often takes contractual responsibility for physical damage, plus continuing hire charges while the plant is out of use. The maximum hired-in exposure matters when obtaining a quote. Cover depends on the insurer and policy.
Are building materials covered?
Materials intended to become part of the works can be covered, depending on the arrangement. This often forms part of the contract works section, protecting the value of materials on site against insured physical loss or damage before completion. Scope, exclusions and limits depend on the insurer and the policy wording.
Can subcontractors be included?
Subcontractors can often be included, and both labour-only and bona fide subcontractors are relevant to how cover is arranged. Payments to subcontractors are usually part of the information an insurer requests. How subcontractors are treated depends on the insurer and policy, so the arrangement should reflect how the business actually uses them.
Can civil engineering contractors get CAR insurance?
Yes. Civil engineering contractors carrying out groundworks, excavation, drainage, roads, foundations and structural works often use Contractors’ All Risks cover, given high-value plant and larger contracts. Higher-risk activities such as deep excavation affect the arrangement. Cover, exclusions and limits depend on the insurer and the specific work undertaken.
Can electrical contractors get Contractors' All Risks insurance?
Yes. Electrical and M&E contractors working on larger installation contracts, such as building services, cabling, controls and commercial fit-outs, can use Contractors’ All Risks cover. It can bring together the contract works, materials and plant, with liability arranged alongside. Cover depends on the work undertaken, the insurer and the policy selected.
Can property developers get Contractors' All Risks insurance?
Property developers can arrange Contractors’ All Risks cover for construction and refurbishment projects, where substantial value is tied up in the works and materials before completion. Responsibility for insuring the works depends on the contract. The arrangement reflects the projects undertaken, and cover and exclusions depend on the insurer and policy wording.
Can Commercial Combined insurance include contractors' risks?
Yes. For an established contractor, a Commercial Combined arrangement can bring several covers together, such as contract works, owned and hired-in plant, Employers’ Liability, Public Liability, products, commercial property, stock and business interruption. It extends beyond a single project. What forms part of the arrangement depends on the activities and the insurer.
What information is needed for a CAR insurance quote?
Insurers typically ask about turnover, years trading, employees and wage roll, the exact contracting work undertaken, typical and largest contract values, project types, owned plant values and maximum hired-in exposure, subcontractor payments, higher-risk work, any design responsibility, claims history and the cover limits required. More detail helps a broker understand the risk.
What affects the cost of Contractors' All Risks insurance?
Factors include annual turnover, the nature of the contracting work, maximum and total annual contract values, project duration and location, construction methods, work at height, excavation depth, plant values, hired-in plant, number of employees, wage roll, subcontractor payments, claims history and the cover limits required. The mix of factors varies by insurer.
Are temporary works covered?
Temporary works can be covered depending on the policy and the project. Temporary works are the structures used to enable construction, such as supports and formwork, rather than the permanent works themselves. Whether they are included, and to what extent, depends on the insurer and the policy wording, so the arrangement should reflect the project.
Is Contractors' All Risks a contractual requirement?
It frequently is. Construction contracts often set out who must insure the works and to what level, so Contractors’ All Risks or contract works cover is commonly required by the contract. This differs from a legal requirement: the obligation comes from the agreement between the parties rather than legislation. The contract wording sets out the detail.
Does CAR cover damage during a project?
Contractors’ All Risks is concerned with damage occurring during a project, since much of a contractor’s exposure sits in the works, materials and plant before completion. Cover responds to insured physical loss or damage, subject to the exclusions and limits in the policy. What is covered depends on the insurer and the wording.
Is MyMoneyComparison the insurer?
No. MyMoneyComparison.com is an FCA-regulated comparison and introducer service, FRN 916241, and is not the insurer. It does not sell policies. Because contracting risks vary considerably, providing detailed information helps a specialist broker understand the risk and discuss suitable cover. Any policy is arranged with an insurer, not with the comparison service.
Resources
Insurance Guides, Articles & Resources
Related Commercial Property Products
Business Premises by Type
Founder (2013)
13+ Years in the Industry
FCA Regulated Platform
Content on MyMoneyComparison.com is produced in collaboration with FCA-authorised insurance brokers and financial providers. All pages are reviewed for accuracy and regulatory compliance. MyMoneyComparison.com Ltd is authorised and regulated by the Financial Conduct Authority (FRN: 916241). Last updated: September 2026.
Legal & Regulatory Information:
The MyMoneyComparison.com website is owned and operated by MyMoneyComparison.com Ltd, which does not provide financial advice and does not sell insurance policies. MyMoneyComparison.com Ltd is authorised and regulated by the Financial Conduct Authority (FCA) for insurance mediation and credit broking activity under FCA registration number 916241.
MyMoneyComparison.com Ltd is a data controller under the Data Protection Act 2018, registered on the Data Protection Register under registration number ZA460665.
Registered Office: Jubilee House, 55 Church St, Morley, Leeds LS27 9JQ, United Kingdom.
© 2013-2026 MyMoneyComparison.com Ltd. All rights reserved.