Contractor's All-Risk Insurance Policy

Why Should You Purchase Contractor All Risk Insurance Policy?

Considering the unique risks inherent in construction projects, investing in a Contractors All Risk Insurance Policy offers invaluable protection and peace of mind. Here's why:

1. Project-Specific Coverage: Project insurance offer coverage tailored to the risks specific to construction projects, ensuring that contractors have protection against common perils encountered during construction activities.
2. Comprehensive Protection: The Contractor's All Risk policy provides extensive coverage that spans from the storage phase through construction, persisting until the project reaches completion and is transferred to the principal.
3. Contractual Obligations: Contractor All Risk policy (CAR Insurance) helps contractors meet contractual requirements stipulated by project owners or contracts, demonstrating their commitment to risk management and compliance with project specifications.
4. Risk Transfer: By transferring the financial risk to the insurance provider, contractors can safeguard their assets and reduce potential losses resulting from unforeseen events or disruptions during construction.
5. Continuity of Operations: In the event of property damage, equipment breakdowns, or delays, Construction Insurance ensures the smooth continuation of construction operations by providing financial support for necessary repairs, replacements, or compensation.
6. Professional Reputation: Having CAR Insurance enhances the professional reputation and credibility of contractors and construction firms, instilling confidence in clients, partners, and stakeholders regarding their ability to manage risks effectively.

Who Should Purchase Contractors All Risk Insurance Policy?

The Contractors All Risk Insurance policy (CAR Insurance) is essential for various stakeholders involved in construction projects, including:

• Contractors
• Builders
• Construction Companies
• Project Owners
• Companies financing the project
• Firms commissioned to carry out the work, including subcontractors

What is Covered Under Contractors All Risk Policy?

The Construction Insurance policy, a type of Engineering Insurance, covers the following:

1. Material Damage:

   • Loss, harm, or devastation of property (excluding packing materials) specified in the Policy Schedule.
   • Losses from any cause not explicitly excluded.

2. Third-Party Liability:

   • Legal liability for unintentional loss or damage to the property of others.
   • Legal liability for fatal or non-fatal injury to individuals other than the insured, their employees, employees of the site owner, employees of other associated firms, or members of the insured's family.

3. Fire Group of Perils

   • Fire, bush fire, implosion, explosion impact damage

4. Act of God Perils (Major Perils /AOG Perils in Construction All Risk Policy)

   • Earthquakes, volcanic eruptions, storms, tempests, floods, inundations, landslides, rockslides

5. Social Perils (SRCC in Construction All Risk Insurance)

   • Riots, strikes, malicious damages, burglary and theft

What is Not Covered Under Contractors All Risk/Construction Insurance?

The exclusions in Construction All Risk insurance are as follows:

• Risks related to war and nuclear incidents
• Partial or total work stoppage
• Intentional acts or negligence by the insured party
• Faulty materials or poor craftsmanship
• Obligations outlined in contracts
• Accidents involving vehicles licensed for general road use, waterborne vessels, or aircraft
• Damage caused by normal wear and tear
• Loss or damage due to design flaws
• Penalties arising from contractual obligations
• Exclusion of coverage for road-use vehicles

Add-Ons Under Contractor All Risk Policy

Policyholders can enhance their coverage by purchasing add-ons offered by the insurer. The extensions in Construction All Risk insurance / Project Insurance are as follows:

• Damage to surrounding property caused by the contractor's work.
• Construction equipment such as shuttering material and scaffolding.
• Maintenance cover and maintenance visits.
• Rectification of original defects or faults incurred during construction.
• Damage or accidental loss during rectifications carried out in the maintenance period.
• Disappearance or shortage (inventory losses).
• Clearance or removal of debris.
• Coverage against terrorism-related incidents.
• Dilling work for water wells
• Extension of maintenance period
• Fire fighting
• Marine offshore works

Construction Insurance Policy: Claim Process

Follow the below steps to file a claim for the contractors all risk insurance policy:

1. Notify Your Relationship Manager: Inform your dedicated relationship manager promptly about the incident to initiate the claim process effectively.
2. Complete and Submit Claim Form: Fill out the provided claim form and submit it to your relationship manager to formally commence the claim procedure.
3. Evaluation and Claim Registration: Your submitted information will be swiftly forwarded to the insurance company for thorough evaluation and registration of the claim, resulting in the issuance of a unique claim reference number.
4. Appointment of Surveyor: Upon claim initiation, the insurer will appoint a competent surveyor to assess the situation and determine the extent of the damages.
5. Documentation Submission: Upon survey initiation, the appointed surveyor will assist you in the required documentation process. Submit all necessary documents as instructed for efficient claim processing.
6. Claim Approval and Funds Disbursement: Once the evaluation process is concluded and your claim is approved, the insurance company will promptly release the claim funds to you for timely resolution of the incident.

Please note: The insurer will carefully review the terms and conditions of your policy to determine coverage eligibility for the reported incident. Consequently, the decision to accept or reject the claim will be made solely by the insurer.

Why Should You Purchase Contractors All Risk Insurance/ Project Insurance via Policybazaar for Business?

• Expert Consultation: Our team of business risk consultants provides personalized advice tailored to your unique needs and preferences.
• 365-Days Claim Support: Accessible every day of the year, our team of claim specialists ensures smooth and efficient processing of your claims year-round.
• Dedicated Relationship Manager: Upon signing up, you'll receive a dedicated relationship manager who offers continuous support and guidance to safeguard your business against potential risks.
• Competitive Quotes: Utilizing our extensive network of insurer partnerships, we offer competitive quotes from top insurers, ensuring you receive the best prices in the market while maintaining service quality.
• Instant Policy Copy: Enjoy the convenience of instant policy issuance by purchasing contractors all risk insurance directly through our website. With seamless integration with major insurers, you can obtain your policy copy within minutes.