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What does Contractors All Risk cover include?

by | Jan 25, 2019 | Contractors All Risk | 0 comments

Plant Insurance

What does Contractors All Risk cover include?

Contractors All Risk (CAR) insurance is usually provided on a monthly or once-off basis and provides protection for individual construction contracts, including:

– Contract works

– Own plant and tools – monthly only

– Hired in plant – monthly only

– Temporary buildings

A CAR policy is generally the single most inclusive insurance policy for those who work within the construction industry.

How do insurers calculate risk?

Before insurers quote you a premium for your CAR policy, they will first consider a number of factors in order to determine what kind of risk you’re exposed to.

Such factors will include the scope, value, location and duration of the work you will be undertaking.

Do I need to cover temporary site structures?

Sometimes temporary site buildings are automatically included in a CAR policy as long as these are the insured works originally stipulated when buying the policy.

They may be covered under the general definition of the contract works indemnified by the definition of contract works within the policy.

If not, then it will be down to you, the policyholder, to amend said policy to include any temporary buildings as required.

How much cover do I need?

Once-Off: The amount you require will usually depend on the contract value that will be undertaken during the policy term.

Monthly: The amount you require will usually depend on your estimated annual turnover and the value of the biggest contract you’ve undertaken at the time of application.

You should also consider:

– Free issue materials

– Professional fees

– Terms imposed by regulatory authorities such as project managers, municipalities, site inspectors etc.

What other policies should I consider?

In order to ensure that you have all your bases covered, you may also want to consider:

– Public liability

– Employers liability

– Bakkie insurance

For a Contractors All Risk quote click here or speak to one of our specialists today on 080 777 777 1.

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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:

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Have you read your plant hire contract? You should get evidence of the plant hire contract when you hire in a concrete pump truck or any other item of plant.

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When it comes to planning a new construction project, insurance doesn’t always get the priority it requires, with contractors often wondering whether it is really necessary to take out a contract works policy at all. Very often the contract works policy is arranged at the last minute, or even after the project has already started.

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What Are Latent Defects?

A Latent Defect is a defect that is not detected by ordinary inspection, but lies hidden until sometime later, when it’s discovered because it causes a problem that everyone can see.  An example of latent defects would be weak concrete in part of a bridge column, that looks the same as strong concrete, but collapses when a heavy truck drives over the bridge.

Determining The Value Of Your Plant

To determine the value of construction plant we investigate Market Value, Fair Market Value, Replacement Cost, Replacement Value & Actual Cash Value

What is the Defects Liability Period?

The Defects Liability Period starts when the Certificate of Completion is issued and continues for the period agreed to in the Contract. During the Defects Liability Period, the Contractor has to obey all written instructions from the Engineer to carry out repairs and fix any defects which appear in the Permanent Works, so that, at the end of the Defects Liability Period, the Permanent Works are in the condition required by the Contract.

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