It’s called ‘all risk’ because that's what it intends to cover. Policies are worded to provide peace of mind around the enormous risks construction companies face. Construction all risks insurance covers against loss or damage to the contract works caused by ✓ Accidental damage ✓ Natural perils ✓ Basement and substructure construction works ✓ Design errors (consequential damage only) ✓ Testing and commissioning. Policies also cover legal liability for injury to third parties or damage to third party property.