This is sometimes called “ contract works insurance”. This is an insurance policy which covers contract works, such as new buildings in the course of construction, and engineering projects, on an All Risks basis. This policy would usually include Public Liability cover as well. It is often arrange in the joint names of the principal and the contractors.

The main part of Contractors “All Risk” is the contract works section which provides cover for the property being worked on. However, cover can be for a pre-existing property extension and must continue to be insured under its own insurance cover. In other words if the builder starts a fire whilst building the extension, the rest of the house is covered under the contractors insurance, but if the house burns down because of a chip pan fire caused by the owners, it isn’t!