General Insurance 3 min read • Updated September 2026

Does contractors all risk insurance cover theft of materials on site?

Quick Answer / Executive Summary

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.

Key Takeaways at a Glance
  • 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

Most theft cover under a contractors all risk policy is written to respond only when there's clear evidence of forced entry — a broken lock, cut fence, or similar. Materials that simply 'go missing' with no sign of a break-in are much harder to claim for, since insurers use this condition to guard against unprovable internal theft.

Sub-limits on unfixed materials

Materials delivered to site but not yet built into the structure — bricks, timber, fittings, cabling — are often subject to a lower sub-limit than the overall contract works sum insured, reflecting how attractive and easy to remove they are compared with a fixed structure. Check this figure specifically rather than assuming the headline sum insured applies to everything.

Security warranties

Policies frequently include a security warranty — for example, requiring materials to be stored in a locked compound or container overnight, or requiring the site to be fenced. Failing to meet these conditions at the time of a theft can give the insurer grounds to reduce or decline the claim, even if the theft itself is genuine.
Real-Life Case Incident & Precedent
Precedent: Standard CAR theft cover responds where forcible entry is evidenced and the site's security warranty conditions have been met.

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

1 Check the policy's unfixed materials sub-limit against the value of materials you typically hold on site at once.
2 Read the security warranty carefully and make sure your actual site practice matches it.
3 Store high-value or easily resold materials (cabling, sanitaryware, tools) in locked, secure storage overnight.
4 Photograph deliveries and keep receipts to support any future claim.
5 Report any theft to police immediately and get a crime reference number before contacting your insurer.

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.

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