A Contractor’s All Risks Insurance covers civil construction projects such as residential and office buildings, hospitals, schools, theatres, roads, railways, bridges, tunnels, airports, dams, weirs, irrigation and drainage facilities, canals and ports. Additionally, it also covers preparatory work at the construction site (site facilities, excavation and levelling, temporary structures) and also the construction materials stored at the site.

Why the Contractor’s All Risks Insurance?

The Contractor’s All Risks Insurance is a comprehensive insurance policy that covers a wide range of risks that a civil construction project is prone to. This policy is extremely useful for contractors, consulting engineers, architects and financiers because it offers them protection against any unforeseen accidents that might lead to financial losses; right from the arrival of construction materials at the site to the completion of the project.

Who is it for?

Any party involved in construction work in any way, including contractors, firms commissioned to carry out the work, sub-contractors, purchasers and owners, financers. It is termed All Risks Insurance because a single insurance contract covers the whole project and also incorporates all the participants as insured parties.

What does it cover?

The All Risk policy covers any sudden and unforeseen physical damage to the insured civil projects by any cause or peril that is not specifically excluded under the policy. Perils which are covered include:

    • Fire and Allied Perils
    • Flood, storm, tempest & cyclone
    • Earthquake, fire & shock
    • Collapse
    • Water Damage for Wet Risks

What is not covered?

  • Willful Act or Willful Negligence of the Insured
  • Partial/total cessation of Work
  • Defective material or bad workmanship
  • Normal wear and tear
  • Normal Maintenance
  • Loss or damage due to faulty design
  • Disappearance or shortage (inventory losses)
  • Contractual liabilities
  • Consequential losses
  • War and Nuclear risks