Contractor's All-Risk Insurance

Complete protection for your construction project.
Introduction

Contractors All Risk (CAR) policy is a comprehensive insurance policy designed to cover a broad spectrum of risks to which a civil construction project is exposed to from arrival of construction material at site till the completion of project. CAR is especially designed for  contractors, consulting engineers, architects and financiers and insurers against unforeseen accidents. CAR policy protects the properties by covers like SFSP, Machinery, Boiler insurance etc., once the project is over.

Advantages of Contractor’s All-Risk insurance

  • All-risk protection covering a range of perils from natural to man-made causes.
  • Add-ons to cover Advance Loss of profit (ALOP) to prevent losses due to delayed start of projects due to covered perils.
  • Very limited exclusions.
  • Third-party liability is also covered.

There are lot more add-ons available in the CAR policy that helps in covering almost all the losses faced in a construction project regardless of the project cost.

    Basic coverage

    The following are the coverages that can be obtained in a CAR policy;

    • Covers against Fire, Storm, Tempest, Flood and Inundation (STFI), theft and burglary.
    • Strike, riot, malicious damage, sabotage.
    • Electrical and mechanical breakdowns and impact damage.
    • Explosions and implosions.
    • War and allied perils, nuclear.
    • Action by government / any other public body.
    • Willful act or willful negligence, cessation of work.
    • Normal wear and tear, gradual deterioration, atmospheric reaction.
    • Inventory losses.
    • Consequential losses.

    Extensions available in CAR:

    • Surrounding property extension.
    • 50/50 clause – Situations where one party cannot be held responsible for the loss.
    • 72 hours clause – Loss or damage to property during any one 72-hour period is considered as a single event.
    • Free automatic reinstatement clause.
    • Loss minimization expenses.
    • Debris removal.
    • Professional fees.
    • Offsite storage / fabrication.
    • TPL including cross liability.
    • Terrorism risks
    • During maintenance period.
    • Waiver of contribution clause – restricted between principal & contractor.
    • Escalation clause.
    • Waiver of subrogation clause.
    • Expediting clause – air freight and express freight.
    • Extended maintenance.
    • Continuity of cover during operational phase for unit tested but awaiting integral testing.
    • Design defect-DE3.
    • Third party liability and cross liability.
    • Escalation of sum insured.

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