Have you ever been concerned about liability from causing damage to a client’s property? Have you wondered if there was a type of insurance to cover such risks? You’ve come to the right place. Contractors All Risk Insurance is a type of coverage designed for a broad range of contracting companies.
This type of insurance is one of the most common that renovation contractors, construction companies, and equipment installation/servicing firms purchase. It’s usually very affordable, while providing generous coverage.
1. Property damage: Covers liability from causing physical damage to a client’s property
Contractors All Risk will cover you in case you damage a client’s property accidentally.
2. Damage to contractor’s equipment and machinery
Contractors All Risk will cover any damage/loss to your equipment and machinery while working on a job.Â
3. Public liability: Covers injuries or property damage caused to third-parties
Contractors All Risk will cover liability to 3rd parties for property damage and injuries.
If you’re involved in any of the following industries, then you’ll need Contractors All Risk Insurance:
The amount of coverage you should carry depends on what clients typically will request from their contractors, and the number and contract size of your projects.
First off, most clients will usually request for you to carry $1-$2 Million Public Liability coverage under your Contractors All Risk Policy. Having served numerous contractors, this is the coverage amount that we see most commonly requested by the clients of our contractors. Such clients range across MCSTs, commercial landlords, private homeowners, to SMEs across all industries. We have also served contractors who work on big, multi-million dollar projects for Multi-National Corporations. Such MNCs may request for much higher coverage amounts of between $5-$10 million, which we can also provide.
The second consideration when deciding on coverage amount would be your annual revenue. Here’s a table that illustrates the approximate minimum coverage amount you should consider carrying:
Your revenue | Minimum estimated Contractors All Risk coverage amount you should purchase |
Under $500,000/year | $1 million |
$500,001 to $2,000,000/year | $1-1.5 million |
$2,000,001 to $5,000,000/year | $1-2 million |
Above $5,000,000/year | $2-3 million onwards |
Single Project Cover: Starts from $400 per project
Annual Cover (Unlimited Projects): Starts from $83/month
With Provide, you save up to 25% on your premiums. Our digital operating model creates lower overheads, and we pass these savings back to our clients.
