Contractors all Risk Insurance
Covers sudden and unforeseen physical damages
Contractor’s All Risk insurance covers sudden and unforeseen physical damage to civil projects under construction insured by any cause or peril not specifically excluded under the policy.
What is covered under Contractors All Risk Insurance?
Contractors All Risk Insurance Covers the following:
a) Material Damage
provides coverage for the property lost, damaged or destroyed by any cause, other than those specifically excluded in the policy, necessitating replacement or repair.
b) Third Party Liability
Contractors All Risk Insurance provides coverage towards:
- Legal liability for accidental loss or damage caused to property of other persons
- Legal liability for fatal or non-fatal injury to any persons other than the insured's own employees or workmen or employees of the owner of the works or premises due to construction of any property.
Perils covered under Contractor's All Risk insurance include:
- Fire and Allied Perils
- Earthquake, fire and shock
- Flood, storm, tempest and cyclone
- Collapse
- Faults in erection/construction
- Water Damage for Wet Risks
- Human errors, negligence
The policy can be extended to cover the following items:
- Construction equipment such as scaffolding and shuttering materials
- Damage to surrounding property of the contract work
- Maintenance visit/extended maintenance cover
- Accidental loss or damage while carrying out any rectification during maintenance period
- Rectification of original defects or faults during construction
Who can take the insurance?
- Contractors
- Purchaser or owner
- Companies financing the project
- Firms commissioned to carry out the work, including subcontractors
Exclusions in Contractor’s All Risk Insurance?
- War and nuclear risks
- Partial/total cessation of work
- Willful act or willful negligence of the insured
- Defective material or bad workmanship
- Contractual liabilities
- Normal maintenance or making good
- Normal wear and tear
- Loss or damage due to faulty design
- Disappearance or shortage (inventory losses)
- Consequential losses
