Construction All Risk insurance

Construction all risk insurance covers building companies for damage to property and third-party injury or damage claims, during the project. Howden consultants can design you bespoke coverage, with a range of add-ons to suit your risk profile precisely.

All policies include temporary structures and works, including renovations.  Where your project is financed, the lender may require other insurances to be procured to safeguard their financial interest in the project.

What’s covered by a construction 'all risks' policy?

An all risks policy covers all risks, except those specifically and explicitly excluded. But all insurance policies by their very nature have exclusions; it’s your broker's job to ensure that any exclusions are accounted for in other policies or at the very least, you are fully aware of what you aren't covered for. 

First-party cover

“First-party” damage cover incidents that cause losses to your own assets or profitability. It's important to cover for:

• Fire, including electrical fire
• Lightning
• Earthquake 
• Typhoon
• Flood
• Explosion, 
• Falling aircraft
• Vehicle impact,
• Smoke damage, 
• Water damage 
• Bursting &/or overflowing of water tanks, apparatus or pipes
• Sprinkler leakage
• Electrical fire
• Robbery/burglary
• Riot, strike, civil commotion, and malicious damage 

Third-party cover 

It also gives protection for key ‘third party’ liabilities, e.g. accidental bodily injury and property damage claims. 

Some examples of typical third party clauses: 

• Extended maintenance clause
• Truck risk 
• Vibration, removal and weakening of support
• Project owner/contractor plant and equipment 
• Existing property clause
• Owners supplied material

What’s excluded? 

The main thing to be aware of is that “construction all-risk” doesn’t cover accidents and injuries in the workplace – these risks are covered under General Liability policies, which we can arrange at the same time if you wish. 

Popular Add ons

Contract works

A form of property insurance that covers structures and materials associated with the job in the event of damage. 

Professional fees

Covers the cost of consultants, required to help rectify damage to the contract works. For example, architects or surveyors.

Environmental liability    

If you have an accident that pollutes land, air or water or harms natural resources and/or biodiversity, the clean up can land you with a huge bill. 
Environmental liability insurance is there to cover the costs of restoring the equilibrium. 

Latent defects

Typically used by property developers and building contractors, to protect them against damage caused by defective design or workmanship that is undiscovered until later.  
Latent defects insurance covers costs associated with remedial work. The policy can be used up to 12 years after the job’s completion.

Construction professional indemnity

Construction professional indemnity protects you from claims made in the event of negligent work, giving poor advice or errors and omissions. 

Call and speak to a broker about getting a bespoke package to meet your needs precisely.  

Delays in start up

Bolt-on protection for maximum reassurance 

Sometimes called “advanced loss in profits insurance”, delay in start up insurance protects against loss of revenue resulting from damage to works and structures that causes a delay in completing the project. 

Non-damage delays 

With a no-damage-for-delay clause, primary contractors can find themselves liable to pay damages to subcontractors if the project is delayed. A ‘no damage delays’ clause transfers this risk (subject to certain conditions. For example, delaying on purpose is excluded).