What is contractors all risk insurance UK?
In the UK, contractors all risk (CAR) insurance is the standard policy structure used across residential, commercial, and civil engineering projects, combining contract works cover, plant cover, and liability protection in one contract. It's frequently a condition of funding, of the main building contract (such as JCT terms), or of a client's procurement requirements.
- UK construction contracts routinely name CAR insurance as a condition before work can start.
- JCT and similar standard-form contracts often specify minimum sums insured and named parties on the policy.
- Cover needs to reflect UK-specific practice, such as CDM 2015 duties and CPA plant-hire conditions.
- Lenders and developers commonly require the policy to note their interest before releasing funds.
- Premiums and required limits vary by region and site risk, so a London city-centre job and a rural extension price very differently.
Where UK contracts reference CAR insurance
How it interacts with UK-specific duties
What a UK insurer will ask about
Joint names requirement missed on a JCT contract
Scenario: A main contractor took out a CAR policy in their own name only, without naming the client as a joint insured party, despite the JCT Minor Works contract requiring joint names cover.
Resolution & Judicial Outcome: After a fire damaged partially completed works, the client's own claim was initially disputed because they weren't named on the policy; the issue was resolved only after the insurer agreed to backdate an endorsement, delaying settlement by several weeks.
What You Should Do: Step-by-Step Action Plan
Critical Mistakes to Avoid
- Ignoring a joint-names requirement buried in the building contract's insurance clause.
- Assuming a generic CAR quote automatically satisfies a specific JCT or bespoke contract clause.
- Overlooking regional flood or subsidence risk when setting the sum insured.
- Leaving CDM principal contractor duties unmentioned when briefing the insurer.