Contactor's All Risk Policy

The Contractors All Risk (CAR) Insurance policy offers coverage against any kind of loss or damage caused to the Contract-based workers who work at the Construction sites. The policy is beneficial for the project construction sites and the professionals working in that places.

The construction all-risk insurance is voluntary insurance that comes in the form of an all-risk contract and insures construction, renovation, reconstruction, assembly, disassembly, or installation work from the beginning of the construction work to delivery of the finished project to the contracting entity.

An insured event is a damage caused by an unexpected and unforeseen event specified in the policy conditions, as a result of which the construction work or materials are damaged or destroyed and the insurer becomes obliged to indemnify them. An all-risk insurance contract covers any damage whose causes are not presented in the policy conditions as restrictions.

There are some of the features and benefits of the Contractor's All risk insurance policy. It offers a comprehensive insurance cover for civil engineering projects where the value of civil works is more than fifty percent of the total contract value. The cover operates during storage, erection/construction till completion and the handing over of the works to the principal beneficiaries up to a certain amount that does not exceed the sum mentioned against every item and does not exceed the total sum insured.

This insurance policy also covers the third party liability where the coverage towards the legal liability related to accidental damage or loss caused to the property of a third person, legal liability for non-fatal and fatal injuries to a third person (other than the own employees of workers of the insured) due to the construction of the property.

Perils that are covered under the Contractor All Risk policy are:

• Fire and allied perils
• Collapse, earthquake, shock, and fire
• Faults in construction, storm, flood, cyclone, and tempest
• Negligence and human errors and Water damage

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 this policy. It comprises two common sections named material damage and third-party liability.

There might be a question, why is Contractors All Risk Policy required?

This insurance policy is specially designed to protect civil contractors against the destruction or damage of different construction projects. Any accidental damage to these projects or the plants of the contractor or machinery is covered in this kind of policy. Some of the key benefits of a CAR Policy are:

• Most of the plans under this insurance type cover projects of civil engineering where the civil works are more than fifty percent of the total value of the contract and the plan starts covering the project from the time of storage, construction, and covers till the project gets completed and is handed over to the principal. The contractor's All Risk insurance policy can be availed by those who are involved in any way in the construction business. For example, Contractors, Owners, Developers, Companies financing the project, and you can also cover all participants under a single insurance contract for the whole project to avoid gaps in coverage.

Reference

CAR_pol.pdf (imia.com)

Construction-all-risk-insurance.pdf (pzu.ee)