What is not covered by a Contractors All Risk Policy?

The main part of the Contractors All Risks insurance is the Contract Works section which provides cover for the property being worked on (e.g. new house, etc.). But it’s important to be aware of what’s not covered by a contractors all risk policy. these are just a few examples of what’s not covered by a contractors all risk policy :

• Construction plant, equipment and tools
• Consequential loss – loss due to delay, loss of any kind or description whatsoever including penalties, lack of performance, loss of contract, liquidated damages
• Losses discovered when an inventory is taken
• Existing property – unless it’s been specifically included in the cover
• Faulty design, workmanship or materials
• Errors and omissions
• Stoppage of work whether total or partial
• Willful acts or willful negligence of the Insured or of his representatives
• Political acts ( these are insured under SASRIA)
• The excess or the deductible stated in the Schedule

Are sub-contractors covered by a Contractor’s All Risks Policy?

This depends on the requirements of the Contract. Not all Contracts will require the Main Contractor to name sub-contractors as Insureds in their Contract Works policy. This in some cases they they are not covered by a contractors all risk policy. Some sub-contract agreements require the sub-contractor to take out their own Contract Works Insurance and to name the Main Contractor and Principal as an Insured. Typical contract trades for Contractors All Risks insurance cover would be general building contractors, air conditioning/heating engineers, aluminum door installers, electricians, shopfitters, bricklayers, carpenters/joiners, plumbers, plastering/partitioning/dry walling and floor/wall tiling contractors. The Contract Works policy should follow the requirements of the Contract so it’s essential to understand the Contract properly to ensure that it mirrors the insurance policy correctly.