How does cladding impact Contractors All Risk Insurance?

August 21 2020 By Mitch Cookney

Aluminium cladding has been an area of debate for a number of years for insurers. The impact of Grenfell has intensified this in recent years and with new building regulations potentially on the horizon, it is likely for insurers to be asking more questions than ever before. 


Landlords with unresolved issues may find they are unable to obtain adequate building insurance. Likewise, key professionals to the construction sector may have problems obtaining adequate PI cover for their historic exposures. Both of which have been highly commented on in various construction presses in recent times. 


However, how does cladding impact Contractors All Risk Insurance in the current climate? 


There is a push nationally to replace hazardous cladding. Where project works are undertaken to replace the existing cladding, then checks should be made with both the existing property insurer and the CAR insurer to check that any fire perils are covered. 


For new builds however, there is a thought that there is less exposure. However, often cladding is tested in a completed shell to prove against flammability, albeit the insulation itself may be flammable. During the works, the cladding is often open in parts creating a significant fire risk and the “fire proofing” is only applicable at the point of completion. 


For any construction project involving cladding therefore, it is key that a competent broker and insurer is present to understand the exposures and provide a suitable product and risk management solution to your needs. 


For expert advice on your construction project, contact us today at Reich Construction: 


T: 0161 830 7556