COMMERCIAL INSURANCE
Contractors all risks definition
Contractors all risks is a comprehensive construction insurance that covers damage to contract works and related third party liabilities.
In practice, this means insurance provided in respect of contract works - covering damage to property on site and third party liabilities. The cover is also known as builders’ risks in the US. This gives insurers, brokers, reinsurers and risk managers a shared way to discuss the concept when reviewing policies, claims, regulation or market data.
This term is especially useful in insurance market analysis, policy wording and risk transfer decisions. It helps clarify what losses may be covered and how policy wording affects the scope of protection. It also helps users compare how insurance is structured, regulated, priced or claimed across different markets.
Contractors all risks is closely related to construction all risks, builders’ risks, property insurance and third party liability. Linking these concepts together helps build a clearer glossary structure and gives readers a stronger understanding of how individual insurance terms connect within wider international insurance practice.
At a glance
- Used in
- Insurance market analysis, policy wording and risk transfer decisions.
- Purpose
- Helps clarify what losses may be covered and how policy wording affects the scope of protection.
- Important because
- Clear definitions support better comparison of insurance products, market practices and regulatory requirements across jurisdictions.
- Related terms
- construction all risks, builders’ risks, property insurance and third party liability.
Example of contractors all risks insurance
A contractor is building a new office block. Contractors all risks insurance may cover physical damage to the works and certain third-party liabilities during construction.