Does contractors all risk insurance cover theft of materials on site?
Usually yes, but with conditions: most contractors all risk policies cover theft of materials and fixed plant, but only if there's evidence of forcible and violent entry to a secured site or store, and unfixed materials often carry a lower sub-limit than the main contract works sum insured.
- Cover for theft typically requires proof of forced entry, not just a report that items went missing.
- Unfixed materials (delivered but not yet installed) often have a specific, lower sub-limit.
- Site security requirements, such as locked compounds or CCTV, are often written into the policy as a warranty.
- Breaching a security warranty can allow an insurer to reduce or decline a theft claim.
- Hired-in plant theft is a separate consideration from material theft — see the hired-in plant guide.
The 'forcible and violent entry' condition
Sub-limits on unfixed materials
Security warranties
Copper cabling stolen from a secured compound
Scenario: A quantity of copper cabling was stolen from a locked steel container on a commercial site overnight, with the container's padlock visibly forced.
Resolution & Judicial Outcome: The claim was accepted because the site met its security warranty (materials stored in a locked container) and there was clear physical evidence of forced entry, and the payout was capped at the unfixed materials sub-limit rather than the full contract works sum insured.
What You Should Do: Step-by-Step Action Plan
Critical Mistakes to Avoid
- Assuming any missing materials will be paid out without evidence of forced entry.
- Leaving high-value deliveries in the open overnight, breaching an unwritten but expected security standard.
- Overlooking the unfixed materials sub-limit when ordering a large delivery in one go.
- Delaying the police report, which insurers usually require before considering a theft claim.