What is Contractor’s All Risk Policy?

During the course of execution of project relating to construction of building and civil engineering works, certain unforeseen accidents could occur resulting in considerable financial loss to the contract works, construction / or the principals arising from damage to the contract works, construction of plant and machinery as well as Third Party Claims. The Contractors All Risks (CAR) Insurance has been designed to protect the interests of the Contractors /Principal against such losses.

 

Who needs Contractor’s All Risk Policy?

Although Contractors All Risk policy may be taken by the Principal or by the contractor, but usually, under the terms of the agreement between the contractor and the principal, it is obligatory on the part of the contractor to effect a CAR insurance in their joint names before the commencement of the project.

 

Why you should Buy Contractor’s All Risk Policy?

One of the leading General Insurance Company with following strengths:

One point contact for all requirements.
Better understanding of risk, effective underwriting of portfolio and better risk management.
Dedicated Risk engineers to cater construction sector clients.
Financial strength and supreme claims paying capacity.

Why do you need Contractor’s All Risk Policy

Contractors All Risk is a comprehensive insurance cover to the client for any contingency from the moment the material is unloaded at the site of the project and continues during storage, physical construction/erection and till the test run is over and during maintenance, if covered.

 

What is covered by Contractor’s All Risk Policy?

Below are the detailed inclusions and exclusions of Contractor’s All Risk Policy

  • Location Risks: Fire, Lighting, Theft, Burglary & Housebreaking.
  • Testing and Commissioning Risks*: Failure of Safety Devices, Leakage of Electricity, Insulation failure, Short circuit, explosion.
  • Act of God: Storm, Tempest, Hurricane, Flood, Inundation, Subsidence, Landslide, Rockslide, earthquake.
  • Handling Risks: Impact from falling objects, Collision, Failure of Cranes or Tackles etc.
  • Risk of Human Element: Carelessness, Negligence, Faults in Erection/Construction, Strike & Riot, Malicious damage, Terrorism.
  • Testing Perils: Maximum value at risk. A specific request to be made to UW.

  • War & Allied Perils.
  • Wilful act or wilful negligence of Insured/ his representatives.
  • Excess in respect of each claim as stated in the policy.
  • Normal wear and tear, gradual deterioration, lack of use, obsolescence, rust, etc.
  • Any damages/ penalties on account of the Insured of the terms of delivery/ completion under his contract of construction.
  • Nuclear & Allied Perils.
  • Cessation of work.
  • Losses discovered only at the time of taking an inventory.
  • Loss/ damage due to faulty design, defective material or casting other than faults in erection.
  • Consequential loss/ liability of any kind.

The insurance cover is subject a few exclusion listed in the policy which are applied internationally and are common to the insurance industry.

 
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