Contractor's All Risk Policy

Contractor's All Risk policy provide coverage against any type of loss or damage that took place in the construction site to the worker, machine. This policy has been designed keeping in mind the safety of architects, construction engineers, and financiers. Therefore this policy helps in reducing overall expenses of construction by providing sufficient financial protection to the parties involved.

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What is Contractor's All Risk Policy?

Contractor's All Risk Policy is a non-standard policy that offers coverage for third party injury and damage of property which are considered the primary risk factors in construction sites. In case the property is damaged as a result of poor construction of the building's structure or any other loss or damage that takes place at the time of renovation is covered under construction's all risk policy.

Contractor's All Risk Policy is specifically designed for keeping the civil engineers safe against destruction or damage of different construction projects such as office , tunnels, channels etc. Any accidental damage that results in loss to such projects or the plants of the contractors or machinery is covered in this type of policy. The advantages of contractor's all risk insurance policy are:

Plans under this insurance kind cover projects of civil engineering where the percentage of civil work is more than 50% of the total value of the contract.

The contractor's all risk policy plan begins by covering the project from the time of storage, construction, and continues till the project gets completed and is given back to the principal.

The common advantages or coverage of Contractor's All Risk Policy are:

Material Damage: Under this section, any loss, damage, or destruction of property which took place due to any cause other than those specifically excluded in the policy are covered. Therefore, this policy often pay for the losses or damage up to the sum specified against every item and does not go beyond the total sum insured.

Third-Party Liability: Under this, the coverage towards:

Legal Liability in relation to the accidental damage or loss to the property of third person

2. Legal Liability for non-fatal and fatal injuries that are caused to third person (other than the own employees or workers of the insured) as a result of the construction of the property.

3. Perils that are covered under Contractors All Risk Policy are:

Fire and allied perils
Collapse
Earthquake, shock, and fire
Fault in construction
Storm, flood, cyclone, and tempest
Negligence and human errors
Water damage

It provides comprehensive insurance cover for civil engineering projects where the value of civil works is higher than the 50% of the entire contract value.

The coverage commences during storage, erection/ construction and the passing over of the works to the principal.

A policy holder can take the benefit of below mentioned add-ons:

Damage caused to surrounding property of the contractor's work.

Construction Equipment like shattering material and scaffolding

Maintenance cover and maintenance visit

Rectification of the original defect or faults incurred in the construction

Damage or accidental loss which took place while carrying out rectification process during the maintenance period.

The following steps are essential for filing a claim for the contractor's all risk policy:

Intimate us or the insurance company immediately about the damage/loss by phone.

After informing , we or the insurance provider must be notified in writing in relation to the damage or event of a loss. The extent of damage caused to the property must also be specified in the written notification.

In case the loss or damage is caused as a result of burglary/theft, then the insured must inform the police immediately.

The surveyor of the insurance company then visit the site for survey. For that purpose, the insured must keep the damaged property/ parts safely for the surveyor to inspect it properly.

The policyholder needs to submit the duly filled claim form with the following documents either directly to us or to the insurance company:

The written statement of the claim containing details of loss or damage of the property.

2. Technical damage report in case of machinery claims

3. Delivery receipts or purchase invoice.

4. A police report, in case it is lodged

5. Repair or replacement estimate.

General Inclusions

Why contractor's All Risk Policy is needed?

Benefits of Contractor's All Risk Policy

Contractor All Risk policy Features

Add-On Coverage:

Claim process for Contractor's All Risk Policy

Sudden and unforeseen physical damage to civil projects under construction are covered under Constructor's All Risk Insurance unless specifically excluded under the policy. It contains two sections:

Section I - Material Damage

It covers the property lost, damaged or destroyed by any cause, other than those specifically excluded under the policy, requiring replacement or repair. This policy will make good all such loss or damage up to the amount not exceeding the sum mentioned in respect of every items and not going beyond in the whole the total sum insured.

Section II- Third Party Liability:

It provides coverage against:

1. a) Legal liability for accidental loss or damage to the property of other persons.

2. b) Legal liability for fatal or non-fatal injury done 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 that are 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

Who can take this Policy?

Contractor's All Risk Insurance can be availed by those who are involved in any way in construction business, such as:

Contractors
Purchaser or owner
Companies financing the project
Firms commissioned to carry out the work, including subcontractors

You can also cover any participant under single insurance contract for the whole project in order to avoid gaps in cover.

War and nuclear risks

Partial/ total cessation of work

Wilful act or wilful negligence of the insured

Defective material or bad workmanship

Contractual liabilities

Normal maintenance or making good

Normal wear and tear

Loss or damage as a result of faulty design

Disappearance or shortage (inventory losses)

Exclusion in Contractor's All Risk Insurance

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