Contractors All Risk (CAR) insurance is a type of policy designed specifically to provide protection to contractors and builders in the United Kingdom. This insurance covers a range of risks that are inherent in the construction industry, including damage to property, liability claims, and injuries sustained by employees.
In the UK, it is a legal requirement for contractors to have public liability insurance. However, this policy only provides cover for claims made against the contractor by third parties. Therefore, a contractor may also need to purchase CAR insurance to provide additional protection for their business.
CAR insurance covers all physical risks that may occur during a construction project, including damage to the property being built and to any materials or equipment on site. This insurance also covers any damage caused to third-party property as a result of the construction work.
The policy may also provide cover for legal expenses that may arise from any claims made against the contractor or their employees. For example, if an employee is injured while working on a construction project, the policy may cover any legal fees that arise from a compensation claim.
In addition to the above, a CAR policy may also provide cover for loss of profits, business interruption, and damage caused by natural disasters such as floods, fires, and storms. These additional coverages can help contractors to protect their business against unforeseen events that could result in significant financial losses.
In conclusion, contractors all risk insurance is a must-have policy for any contractor working in the UK. This policy provides comprehensive coverage to protect against the various risks associated with construction work, including damage to property, injury claims, and legal expenses. By investing in this insurance, contractors can have peace of mind knowing that their business is protected against unforeseen risks and potential financial losses.