Contractors All Risks Insurance
Protects construction projects against specified physical loss or damage to contract works, construction materials, plant and equipment on-site. It can also cover third-party injury and property damage liability.
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Contract Works
Cover for sudden and unforeseen physical loss or damage to the structure being built — from foundations and columns to finishes — while the project is in progress, up to the declared contract value.
Materials on Site & in Transit
Cover for building materials and components stored at the site, plus optional extension for materials in transit to site, so a delivery that is damaged on the way does not halt the job.
Plant & Machinery
Cover for your own or hired plant, tools and equipment used on the project — mixers, excavators, generators, scaffolding and power tools — against insured damage while at the site.
Removal of Debris
Cover for the cost of clearing and disposing of rubble, broken material and wreckage left after an insured loss, so the site can be made safe and work can resume quickly.
Third-Party Liability
Protection against legal liability for bodily injury or death suffered by third parties and for damage to their property arising out of the execution of the contract works.
Testing, Fees & Off-Site Storage
Optional cover for testing and commissioning of installed plant, professional or engineer's fees for supervising the reinstatement, and materials held at declared off-site storage locations.
Why Contractors All Risks Insurance Matters
Material Insurance Does Not Cover the Structure
A fire policy on raw materials pays for burnt timber, not for the half-built house it was meant to become. Only contractors all risks covers the works while they are in progress.
One Event Can Wipe Out the Whole Job
Fire, storm, collapse or a flooded excavation can destroy months of work in a night. The contract value is often far larger than the profit margin on the entire project.
Claims Are Paid on a Proportionate Basis
If you insure the contract for less than its true value, the insurer pays only the proportion covered. Under-insuring to save premium can leave a large gap at the worst possible moment.
Neighbours and Passers-By Can Be Hurt
Falling debris, excavation collapse and site vehicles injure people and damage property around you. Third-party liability keeps those claims from landing on the contractor personally.
Theft and Vandalism Are Constant Risks
Copper, tools, generators and bags of material walk off building sites every week. Cover for materials and plant on site means a break-in does not also break the programme.
Contracts and Clients Require It
Main contractors, developers and lenders routinely require contractors all risks cover, often naming the client or financier as joint insured, before work is allowed to start.
How It Works
Value the Contract
We work from the contract sum, bills of quantities and programme to establish the full value of the works, materials and plant that need to be insured.
Choose Cover & Extensions
You select contract works cover, third-party liability limits and any extensions such as inland transit, testing, off-site storage or professional fees.
Cover Runs With the Project
Cover attaches when work or materials begin and runs through the construction period until completion, handover or the policy expiry date stated in the schedule.
Report & Settle a Loss
Notify the insurer immediately, protect the site from further damage, and submit photographs, police reports and the engineer's report for assessment and settlement.
Types of Contractors All Risks Cover
Choose the structure that matches your contract, your materials supply chain and the neighbours around the site.
Contract Works Only
Straightforward protection for the physical works themselves. Suited to contractors who only need the structure and materials insured against damage during construction.
- Sudden and unforeseen damage to the works
- Materials on site included
- Plant and machinery on the project
- Removal of debris after an insured loss
- Priced from the declared contract value
Contract Works + Third Party Liability
The complete site package. Adds legal liability for injury to third parties or damage to their property arising from the execution of the contract works.
- All contract works benefits included
- Third-party bodily injury and death
- Damage to neighbouring property
- Liability limits set per project
- Often required in construction contracts
CAR with Inland Transit Extension
Adds cover for materials while they travel to site by road, rail or air — useful for projects sourcing tiles, steel, sanitary ware or equipment from distant suppliers.
- Materials damaged while in transit
- Storage at declared off-site locations
- Testing and commissioning of plant
- Professional or engineer's fees cover
- Flexible limit for repeated deliveries
Who Is This For
Building Contractors
Residential and commercial builders from foundation to handover can insure the works, materials and site plant for the duration of each project.
Civil & Road Contractors
Roads, bridges, drains and earthworks carry heavy plant exposure and large contract values, making all risks cover a natural requirement on these jobs.
Developers & Property Owners
Owners funding their own construction can insure the project directly, protecting the investment even where contractors carry their own separate policies.
Subcontractors & Renovations
Plumbing, electrical, roofing and fit-out subcontractors, plus renovation and refurbishment projects, can cover their section of the works and the materials they install.
Common Mistakes to Avoid
Relying on material insurance alone
A fire or burglary policy on materials does not cover the building in progress. Only contractors all risks responds to damage to the structure itself while it is being built.
Under-insuring the contract value
Claims are settled on a proportionate basis, so a works value declared below the true contract sum means an under-insured loss is paid only in part, out of your own pocket.
Starting work before cover incepts
Cover must be in place before work begins or materials arrive. A loss in the days before inception is simply not covered, no matter how reasonable the explanation sounds.
Ignoring subcontractor requirements
Many contracts oblige every subcontractor to carry their own all risks cover and to name the main contractor. Checking this before work starts prevents disputes and uninsured gaps later.
Frequently Asked Questions
What is the difference between all risks and material insurance?
Material insurance covers raw materials and stock against events like fire and theft. Contractors all risks covers the whole project in progress — the structure, incorporated materials, plant and, by extension, third-party liability. You generally need both during construction.
When does cover start and end?
Cover typically attaches when work commences or when materials arrive at site, whichever is earlier, and continues through the construction period until completion, handover or the expiry date shown in the schedule. Extensions can be added for testing after completion.
What does the proportionate basis mean?
If the sum insured is less than the true value of the works, a claim is paid in the same proportion as the cover bears to the value. Insuring a KES 40 million contract for KES 30 million means a total loss pays roughly three quarters, not the full amount.
Is theft covered on site?
Theft is commonly covered subject to evidence of forcible and violent entry, and to limits for tools or materials kept in the open. Sites with poor security or unattended overnight storage should discuss security clauses with us before inception.
Does the policy cover subcontractors?
Work carried out by subcontractors is covered only if the wording says so or if they hold their own contractors all risks policy. Most contracts require each subcontractor to insure their section independently and name the main contractor as interested party.
Can I cover materials before they reach the site?
Yes, through an inland transit extension and, where needed, cover for materials held at declared off-site storage locations. Give us your delivery routes and storage addresses so they are properly scheduled.
Is third-party liability compulsory?
It is not a statutory requirement, but it is very frequently demanded in construction contracts, and it protects you against claims from neighbours and passers-by. For most contractors it is the most valuable extension on the policy.
What do I need to claim?
Notify the insurer immediately, secure the site, and provide the policy schedule, contract documents, photographs, a police abstract where theft or malicious damage is involved, and an engineer's report quantifying the loss.
Real Talk
A fire at 2am. A slab that fails. A lorry of tiles written off on the Nakuru highway. Construction losses do not come in small pieces — they take the whole project with them, and the programme stops the same night.
Contractors who skip all risks to protect margin are gambling the contract against one bad week. When it goes wrong, there is no restart button and no client who will pay twice.
Insure the works before the first bag of cement lands on site.
Contractors all risks products are offered by licensed insurance companies. Coverage, limits, exclusions and premiums vary by insurer, contract value, project type and site security. The information on this page is for general guidance only and does not constitute a quotation or binding offer. Please contact us for personalised quotes and advice tailored to your specific project.
Build With a Safety Net
From a single renovation to a multi-storey contract, get cover in place before work starts and keep the project moving no matter what the site throws at you.
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