Does contractors all risk insurance cover sub-contractors?
Only if the policy is specifically extended to include them. Many contractors all risk policies exclude losses caused by uninsured sub-contractors' negligence by default, so main contractors need to confirm sub-contractors either hold their own cover or are added to the main CAR policy.
- Standard CAR wording often excludes damage caused by an uninsured sub-contractor's negligence.
- Main contractors can add sub-contractors to the policy or require proof of their own cover before work starts.
- Contracts should specify minimum liability and contract works cover limits for every sub-contractor engaged.
- Uninsured sub-contractor exposure is one of the most common causes of disputed claims on multi-trade sites.
- Collecting certificates of insurance from every sub-contractor before they start on site closes most of this gap.
Why the default position excludes them
Two ways to close the gap
Uninsured sub-contractor causes a flood
Scenario: A plumbing sub-contractor left a pipe unsealed overnight, flooding a newly plastered ground floor on a renovation project. The sub-contractor held no insurance of their own.
Resolution & Judicial Outcome: Because the main contractor's CAR policy had been extended to cover damage caused by sub-contractors, the contract works section paid for the re-plastering and drying-out costs, and the insurer separately pursued recovery from the sub-contractor.
What You Should Do: Step-by-Step Action Plan
Critical Mistakes to Avoid
- Assuming verbal confirmation of 'yes we're insured' is enough without seeing the certificate.
- Letting a sub-contractor's certificate expire mid-project without noticing.
- Setting sub-contractor liability limits far below your own policy's limit.
- Forgetting to renew the sub-contractor extension when the main CAR policy renews.