Contractor All Risk Insurance policy offers adequate and comprehensive coverage against damage or loss in respect of construction plant, contract work, construction machinery, and/or construction machinery/equipment. In this way, this policy is designed for architects, construction engineers, and financers as it contributes to reducing the overall expenses of construction. Moreover, in the contractor’s all risk policy offers sufficient financial protection to all the parties involved.Why Contractor All Risk Policy Required?
This insurance policy is specially designed for protecting civil contactors against destruction or damage of different construction projects like office, hospital, channels, tunnel, etc. Any accidental damage to these projects or the plants of the contractor or machinery is covered in this kind of policy. Some of the benefits of contractor all risk insurance policy are:
• Most of the plans under this insurance type cover projects of civil engineering where the civil work is more than 50% of the total value of the contract.
• 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.Benefits of Contractor All Risk Policy
The common benefits or coverage that most of the policies provide under this plan are:
• Material Damage: Under this loss, damage, or destruction of property incurred due to any cause other than those excluded in the policy are covered. Most of the policies pay for the losses or damage up to a certain amount that does not exceed the sum mentioned against every item and does not exceed the total sum insured.
Third-Party Liability: Under this, the coverage towards:
• Legal liability related to accidental damage or loss caused to the property of third-person.
• Legal liability for non-fatal and fatal injuries caused to third-person (other than the own employees or workers of the insured) due to the construction of the property.
Perils that are covered under contractor all risk policy are:
• Fire and allied perils
• Earthquake, shock, and fire
• Faults in construction
• Storm, flood, cyclone, and tempest.
• Negligence and human errors
• Water damageContractor All Risk Policy Features
• It offers comprehensive insurance cover for civil engineering projects where the value of civil works is more than 50% of the total contract value.
• The cover operates during storage, erection/construction till completion and the handing over of the works to the principal.Add-On Coverage:
A policyholder can extend his/her policy to get the following cover as an add-on:
• Damage incurred to the surrounding property of the contractor’s work.
• Construction equipment such as shuttering material and scaffolding.
• Maintenance cover and maintenance visit..
• Rectification of the original defect or faults incurred during the construction.
• Damage or accidental loss while carrying out various rectifications during the maintenance period.