Contract Works Insurance

Contract works insurance (also known as construction or contractors all risks) covers property damage and other risks during construction or alteration. Insurers usually divide projects according to the potential risks:

• construction all risks (for new buildings and alterations, plus civil engineering projects)
• erection or engineering all risks (for installing and testing machinery).

There must be a contract in place clarifying responsibility for:

• how the work is carried out
• what the insurance requirements are
• who should arrange it.

The key areas for the insurer will be:

• contractual responsibility for particular risks
• what insurance must be arranged
• who the insurance will indemnify (contractor/principle/sub-contractor)
• who must arrange it.