Is Contractors All Risk insurance mandatory in the UK?

While not legally mandatory like [Employers' Liability insurance](https://focusinsurance.co.uk/employers-liability-insurance), Contractors All Risk insurance UK is often a contractual requirement for construction projects. Many clients, main contractors, or lenders will insist on it to protect their investment and mitigate project risks. For any business undertaking construction work, it is a crucial form of protection.

How does Contractors All Risk insurance differ from Public Liability insurance?

Public Liability insurance covers your legal liability for injury to third parties or damage to their property caused by your business activities, subject to underwriting criteria and terms. Contractors All Risk insurance UK, however, covers physical loss or damage to the actual construction project itself, including materials, plant, and the works in progress, subject to underwriting criteria and terms. They protect against different types of risks and are often needed in conjunction.

Can a small builder or tradesperson benefit from Contractors All Risk insurance?

Absolutely. Contractors All Risk insurance UK is vital for businesses of all sizes. Even small renovation projects carry risks of fire, theft, or accidental damage to materials and works. Relying solely on standard public liability can leave small builders exposed to significant financial losses if the project itself is damaged.

Does Contractors All Risk insurance cover existing structures when renovating?

Typically, standard Contractors All Risk policies primarily cover the new works and materials. Damage to *existing structures* (e.g., the original building being renovated) is often excluded unless specifically endorsed onto the policy, subject to underwriting criteria and terms. It is crucial to discuss this with your broker to ensure appropriate cover for such scenarios.

What is the "maintenance period" or "defects liability period" in CAR insurance?

This is an extension of the Contractors All Risk insurance UK policy that provides cover for a specified period (e.g., 12 or 24 months) *after* the project's practical completion, subject to underwriting criteria and terms. Cover may be available for physical loss or damage to the works caused by a peril covered under the policy, specifically if the damage arises from the original construction activities or defects that manifest during this period, subject to underwriting criteria and terms.

Understanding Contractors All Risk Insurance UK in 2026: A Comprehensive Guide

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