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Contract Works Insurance, also known as Contractors’ All Risks (CAR) Insurance, is an essential form of cover for anyone involved in construction projects in the UK. 

Whether you’re a builder, contractor, property developer or just a regular person undertaking a self-build project for a new home, Contract Works Insurance protects work in progress against unexpected damage or loss before completion.

In simple terms, Contract Works Insurance covers the structure being built, along with materials, tools and equipment on-site. From small home extensions to large-scale commercial developments, it ensures that unforeseen events don’t lead to costly delays or financial strain.

As an example, imagine you’re midway through a renovation when severe weather damages part of the structure overnight. Without Contract Works Insurance, you would need to cover the repair costs yourself. But with the right Contract Works policy in place, those costs are handled, helping keep your project on track.

Typically, this insurance protects against risks such as fire, flood, storm damage, theft, vandalism and accidental damage, so it’s particularly valuable to have! 

Who Needs Contract Works Insurance?

This cover is particularly important for:

• Builders and contractors

• Property developers

• Self-build homeowners

• Anyone undertaking renovations or extensions

It’s a common misconception that standard home insurance or a contractor’s policy will automatically cover building works. However, in many cases, there isn’t insurance in place that covers this, leaving gaps in separate cover isn’t arranged.  

What Does a Contracts Insurance Policy Cover?

A Contract Works Insurance policy usually includes three key areas:

• The contract works (the building under construction)

• Plant and machinery

• Tools and equipment

Policies can often be tailored to suit the size, scope and risks of your specific project.

Choosing the Right Contract Works Insurance

When arranging cover, it’s important to:

• Ensure the sum insured reflects the full rebuild cost

• Check if materials stored off-site are included

• Confirm who is responsible for arranging the policy

• Consider optional extras such as existing structures or hired-in plant cover.

Timing is also crucial, as cover should be in place from the moment work begins or materials arrive on-site - not after the project is underway.

Why Contract Works Insurance Matters

Construction projects come with inherent risks, but the right protection can make all the difference. Contract Works Insurance provides peace of mind and financial security, but also reassurance that your investment is protected from start to finish.

If you’re planning a construction project, renovation or extension, speaking to an experienced insurance broker, like Prizm Solutions, can help ensure you have the necessary insurances in place for your needs, and you’re not spending money on policies that aren’t relevant or don’t provide you with adequate cover.  Speak with one of our friendly team who’ll enjoy finding out more about your circumstances in order to assist you. 

As well as Contract Works Insurance, Prizm Solutions can also help with many other types of insurance, including Flood Insurance, Renovation & Property Conversion Insurance, Tools & Equipment Insurance, Personal Accident Insurance and Motor Insurance. Just get in touch to find out more.