A basic Contract Works policy covers the physical construction work, including materials, supplies, and equipment on-site. It protects against damage or loss caused by various perils such as fire, theft, vandalism, accidental damage, and natural disasters like floods or storms.

The policy will normally include cover for the cost of removing debris and clearing the site following damage or destruction to the insured property.

The policy can include Plant and Equipment cover which is designed to protect the contractor’s own plant, machinery, tools, and equipment used on-site against theft, damage, and, depending on policy cover, mechanical breakdown during the construction period.

There will often be a section of cover that can include Temporary Works. This provides cover for temporary structures erected during the construction process, such as scaffolding, formwork, and site offices.

Most policies will provide an option to include cover for Hired in Plant and Hiring Fees. This is particularly important if you are using hired equipment, because if it gets damaged or stolen, you will be liable to the Plant Hire company for not just the replacement cost of the equipment, but the loss of hiring fees that they suffer whilst the replacement plant is sourced, purchased, and delivered.

The cost of CAR insurance premiums can vary depending on factors such as the size and complexity of the project, location, duration, and past claims history. Given the complexity of construction projects and insurance policies, property developers may benefit from seeking advice from an insurance broker or legal professionals specializing in construction law.

JCT Insurance Expert is a Chartered Insurance Broker, with many years of experience. We can help property developers and building contractors obtain quotes from multiple insurers and make a  recommendation on cover. We can also advise on the other important cover factors beyond price, such as cover limits, exclusions, conditions, and policy terms.

For a quotation, help or advice call JCT Insurance Expert on 01825 745 410 or email enquiries@eig.email