Whether you’re a contractor managing multiple projects or a property owner tackling a once-off renovation, construction work comes with risk and with risk comes the need for the right insurance.
Contractors all risk (CAR) Insurance provides cover for damage to the works, loss of materials, and third-party liability during a construction project. But not all projects require the same type of policy.
Let’s unpack the two main types of CAR insurance:
- Open annual contract policies
- One-off (specific contracts) policies
Open annual contract policy
Best for contractors with multiple projects.
An open annual contract policy provides continuous cover for all construction projects undertaken by a contractor within 12 months. Instead of applying for insurance every time a new job starts, the contractor is covered under one umbrella policy.
Key benefits
- One policy for all projects during the year
- Reduces admin and saves time
- Often more affordable than multiple one-off policies
- Continuous protection without gaps in cover
- Covers materials, site risks, third-party liability, and more
Ideal for
- Contractors with a steady workflow
- Construction companies with multiple small-to-medium projects
- Service providers (e.g. painters, roofers, waterproofers) working across multiple sites
One-off (specific contracts) policy
Best for single, defined projects.
A one-off contract policy is tailored for a single construction project, providing cover from start to finish. This project-specific policy expires upon completion and is priced and structured according to the unique scope of that job.
Key benefits
- Coverage specific to one project
- Ideal for once-off jobs or unique builds
- Avoids paying for more cover than necessary
- Suitable for both contractors and property owners
Ideal for
- Homeowners doing a renovation or building once-off
- Trustees managing a single upgrade to a sectional title scheme
- Contractors taking on only occasional projects
Feature
Open annual policy
One-off project policy
Coverage period
12 months (renewable)
Duration of the specific project
Number of projects covered
Multiple
One
Admin and setup
Single setup for the year
New policy each time
Cost efficiency
More cost-effective for many projects
More cost-effective for single project
Best suited for
Contractors with ongoing work
Once-off or occasional construction
Which one do YOU need?
Ask yourself, will I be working on more than one project in the next year?
If yes, then open annual policy
Is this a once-off renovation or build? If yes, then one-off project policy
Each option has its place. The key is to ensure your insurance matches your risk exposure and project frequency.
Final tip
Whether you’re a managing agent arranging repairs, a contractor quoting on multiple jobs, or a homeowner planning an upgrade, don’t let work begin without the right cover in place.
Need help choosing the right policy?
At Addsure, we understand the risks involved in construction work, and we help you choose the cover that fits. Talk to us before the first tool is lifted.
Author: Candice Butcher
Addsure is a leading sectional title insurance broker. Get fit and proper advice from advisors who understand sectional title.