Cover for the work in progress itself, also known as contractors’ all risks, and the cover most JCT building contracts require you to hold.
Cover for the work in progress itself, also known as contractors’ all risks, and the cover most JCT building contracts require you to hold.
Work in progressSite materialsHired-in plant
Compare from 20+ Trusted Insurers
Speak to a specialist 0330 027 0996
Contract works insurance, also called contractors’ all risks, covers the building work itself while it’s in progress. If a half-built structure, site materials or a partly finished extension is damaged by fire, flood, storm or theft, this is the cover that pays to put it right.
Public liability covers harm to other people and their property. Contract works covers the job you’re actually building, which is why most contracts require both.
Contract works insurance can include:
Work in progressSite materialsPlant and equipmentTemporary structuresDebris removal costsEmployee tools and effects
It isn’t required by law, but most standard building contracts require it, so in practice it’s compulsory on the majority of construction projects.
You should seriously consider cover if you:
Build new structures or extensionsCarry out renovations or conversionsWork under a JCT or similar contractStore materials on siteHire in plant or scaffoldingWork on a client’s existing buildingNo, there’s no law requiring it. But JCT building contracts set out who must insure the works, and on most projects that obligation falls to the contractor, so your contract makes it compulsory even though legislation doesn’t.
Under JCT terms the cover usually has to run until the Practical Completion certificate is issued.
You’ll usually be required to hold it when you:
Sign a JCT building contractTake on a main contractor roleBuild under a client’s specificationAre asked for a joint names policyTake on a domestic extension or renovation
Which JCT clause applies to your project?
Which JCT clause applies to your project?
JCT contracts set out three options for insuring the works, and which one applies depends on whether you’re building new or working on an existing structure.
JCT contracts set out three options for insuring the works, and which one applies depends on whether you’re building new or working on an existing structure.
| JCT option | When it applies | Who insures the works |
|---|---|---|
Clause 22A / 6.7A | Erecting a new building | The contractor takes out and maintains all risks cover |
Clause 22B / 6.7B | Erecting a new building | The employer takes out the cover instead |
Clause 22C / 6.7C | Work to or extending an existing structure | The employer insures both the existing structure and the works |
Joint names policy | Required under all three options | Written in the names of both contractor and client |
Top Tip
A joint names policy matters more than it sounds: it removes the insurer’s right of subrogation, so they can’t pay one party then pursue the other to recover it. Check which clause your contract specifies before work starts.
What could go wrong on a contract?
What could go wrong on a contract?
Most contract works claims come from fire, flood or storm damaging part-built work, theft of materials from site, or vandalism overnight.
Most contract works claims come from fire, flood or storm damaging part-built work, theft of materials from site, or vandalism overnight.
‘All risks’ is a misnomer. Standard contract works policies exclude a defined list of causes, and knowing them matters as much as knowing what’s included.
Faulty workmanship and defective design are the exclusions that catch contractors out most often.
Commonly excluded:
Wear and tearFaulty workmanshipDefective designRust, mildew and deteriorationLoss or damage from war
Cover often bought alongside contract works insurance
Cover often bought alongside contract works insurance
JCT contracts typically require public liability alongside contract works, one covers the job you’re building, the other covers harm to people and property around it.
JCT contracts typically require public liability alongside contract works, one covers the job you’re building, the other covers harm to people and property around it.
RecommendedPublic Liability
Required alongside contract works under most JCT contracts.
RecommendedEmployers’ Liability
A legal requirement once you employ anyone on site, including labour-only subcontractors.
OptionalPlant & Machinery
Covers owned and hired-in plant, which you’re usually liable for under the hire agreement.
OptionalTools & Equipment
Covers the tools your team needs on site, including theft from a vehicle.
OptionalBusiness Interruption
Helps with lost income and ongoing costs if an insured event stops you trading.
PopularCommercial Combined
Bundle public liability with your other covers into one policy and one renewal date.
There’s no fixed price. The contract value is the main driver, cover is usually written against the full reinstatement value of the works plus professional fees.
Contract value
Cover should reflect the full rebuild value of the works, not just your profit on the job.
Claims history
A clean claims record helps keep premiums down at renewal.
Type of project
Renovations to an existing structure carry different risk to a new build.
Site security
Fencing, lighting and alarms reduce theft and vandalism risk.
Contract length
Longer projects mean longer exposure to fire, theft and weather.
Single project or annual cover
Regular contractors often insure all projects under one annual policy.
How to get contract works insurance
How to get contract works insurance
Getting contract works insurance takes four steps: tell us about the project, set your sum insured, compare specialist insurers, then get covered before work starts.
Getting contract works insurance takes four steps: tell us about the project, set your sum insured, compare specialist insurers, then get covered before work starts.
Tell us about the project
What you’re building, the contract value and the timescale.
Set your sum insured
Cover should reflect the full reinstatement value of the works.
We compare specialist insurers
We search our panel of 20+ UK insurers.
Get covered before work starts
Receive your documents, usually the same day.
UK-based specialist advisersAccess to specialist insurersNo obligation, just expert helpTrusted by thousands of businesses across the UK
Trusted by thousands of businesses across the UK
From everyday business insurance to complex specialist cover, our customers trust Insurance Revolution to find the right protection and provide expert support when it matters.
From everyday business insurance to complex specialist cover, our customers trust Insurance Revolution to find the right protection and provide expert support when it matters.
Contract works insurance guides
Contract works insurance guides
Practical advice on JCT clauses, joint names cover and staying protected.
Practical advice on JCT clauses, joint names cover and staying protected.
Contract Works & Plant Cover for Builders: What You Need to Know
Building projects often come with a wide range of risks, particularly when valuable materials, tools, and machinery are involved. Whether working on residential, commercial, or large-scale developments, builders may benefit from arranging tradesman insurance that specifically includes contract works and plant cover.
Contract Works Insurance Explained: Why Every Builder Should Have It
Building projects can involve multiple risks, from damage to works in progress to unexpected delays. For builders, contractors, and tradespeople, contract works insurance can offer essential protection for ongoing projects. Without suitable cover, rectifying unforeseen damage or loss could result in significant financial strain.
Builder Insurance Claims Guide: What to Do When Tools Are Stolen or Accidents Happen
Builders face a variety of risks on-site, including theft of valuable tools and unexpected accidents that can disrupt projects and impact earnings. Knowing how to navigate the builder insurance claims process can be crucial when these situations occur.
Contract works insurance FAQs
Contract works insurance FAQs
Straight answers on JCT clauses, joint names cover and what’s excluded.
Straight answers on JCT clauses, joint names cover and what’s excluded.
Contract works insurance, also called contractors’ all risks, covers the building work itself while it’s in progress, including site materials and temporary structures, against fire, flood, storm, theft and vandalism.
Still have questions?
Our advisers are here to help you find the right solution.
