When carrying out work for a construction project (“the Works”), whether as a main contractor or sub-contractor, it is essential to take out insurance for several potential risks, such as employee injuries, negligent design (if the Works include design), destruction of the Works and, particularly for large projects, terrorism risk.
Contractors’ All Risk Insurance is a type of insurance policy for construction projects that, as the name suggests, covers a broad range of risks. It is mainly focused on protecting the Works, and the plant and machinery that will be incorporated into the Works. It does not describe the specific types of incidents, such as fire or ground movement, that it covers. Instead, the default position is that it covers “all risks” to the Works and plant and machinery, subject to a list of exclusions.