Contractors Insurance FAQ

• Builders & general contractors
• Developers (including self-builders)
• Renovation & refurbishment specialists
• Property investors managing conversion projects
• Design & build firms
• Subcontractors on larger projects
• Principal contractors (especially on JCT contracts)

It’s often required under:

• JCT contract terms
• Lender or mortgage agreements
• Local authority or commercial tender processes

A CAR policy typically includes:

Contract Works Cover

• Protects the actual building works on site (e.g. extension, loft conversion, refurb project)
• Covers loss or damage due to fire, flood, theft, vandalism, etc.
• Insures materials, temporary structures, and the building under construction

Public Liability Insurance

• For injury or damage caused to third parties or their property

Employers’ Liability Insurance (if applicable)

• Legally required if employing staff or subcontractors under your direction

Own Plant & Hired-In Plant Cover

• Damage or theft of machinery, diggers, scaffolding, tools, etc.

Tools Cover (optional)

• Protection for smaller tools, often up to set limits

Contractor’s Joint Names Cover

Where both the contractor and property owner must be insured under one policy (common in JCT projects)

CAR insurance premiums vary based on:

• Contract value (works + materials + labour)
• Duration of the project
• Type of work (new build, refurb, extension)
• Site security and location
• Claims history and experience of contractor
• Inclusion of plant/tools

Example ranges:

• Small residential project (under £100k): from £350–£900
• Larger commercial or multi-property sites: £1,000–£5,000+
• Can be short-term (3/6/12 months) or annual for rolling projects