The Contractors’ All Risks insurance policy cover all types of building and civil engineering construction – from residential (housing) to commercial (shopping centres and office blocks) to infrastructure (roads, bridges, dams, water and sewage reticulation pipelines) and offers protection against the hazards that may threaten works under construction. Most construction projects include certain elements of machinery erection (e.g. installation of air conditioning and lifts in buildings).
Contractors’ Plant & Equipment Insurance is also known as Plant All Risks insurance or Contractors’ Plant and Machinery insurance. Construction works often call for the use of heavy, specialised machinery such as tunnel boring machines, earthmoving equipment, cranes, pumps, air compressors etc. It is possible to cover such plant and equipment by way of an appropriate endorsement under Contractors’ All Risks policies. However, specific items of plant are usually only on one site until the particular job for which they are designed is completed. The plant is moved on to the next site as soon as its job is finished. Therefore, in most cases, cover granted by means of an endorsement to the Contractors’ All Risks policy would not be suitable, because such policies are limited to loss or damage caused at one particular construction site. It is preferable to issue an annually renewable Contractors’ Plant and Equipment policy, because it caters for plant and equipment used at different locations.