During the tenure of execution of civil engineering projects, including the construction of residential and non-residential properties, like bridges, hospitals, schools, etc. unforeseen accidents may arise, which could result in disastrous financial loss to the construction company and other parties involved. Apart from the property damage due to inferior construction or materials, an injury may be caused to a third party, resulting in claims or lawsuits.
A contractor’s all risk insurance policy has been introduced to protect the contractors, sub-contractors, and owners from massive financial losses that may arise as a result of a lawsuit or claim brought on by the third party.
A contractor’s all risk insurance is a non-standard, comprehensive insurance policy that covers third party bodily injury and property damage concerning the execution of civil engineering projects, including construction projects and various machinery and equipment used during such construction.
A contractor’s all risk insurance policy is highly beneficial to architects, engineers, and financiers of a project as it contributes to the overall reduction of construction costs while offering indemnity and protection to the insured from devastating financial losses.
A contractor’s all risk policy indemnifies the insured for all third party and property damage by covering injuries caused due to:
Earthquakes, landslides, floods, hurricanes, and other natural disasters
Despite covering the risks mentioned above, a contractor’s all risk policy has certain exclusions not covered by the insurance policy. Some examples of such exclusions are:
A contractor’s all risk insurance policy covers civil engineering projects where the civil work is greater than 50% of the total value of the construction project. The tenure of a contractor’s all risk policy begins at the time of storage of materials and covers all risks until the project is totally completed and handed over to the relevant parties involved. Any costs or expenses due to unforeseen accidents resulting in an injury to a third party or any property damage during this time will be indemnified by the insurer.
Different risks factors influence the calculation of premiums of a contractor’s all risk insurance policy, like the location being exposed to risks of natural hazards, the value of the civil engineering project, the duration of the total completion of such civil engineering project, the nature of the work and so on. Insurance companies also allow the insured to opt for add-on covers for surrounding properties, debris removal costs, air freight, etc.
A contractor’s all risk insurance ensures the protection to the insured against lawsuits and claims due to unforeseen loss or damage resulting in damage to property or third-party injuries. It prevents the insured from incurring financial losses due to such lawsuits or claims.
- Contractor’s All Risk
- Product Code: 5004
- Product UIN: IRDAN115RP0021V01200708