Construction all risk insurance?

What is construction all risk insurance?

During the course of execution of project relating to construction of building and civil engineering works, certain unforeseen accidents could occur resulting in considerable ļ¬nancial 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.

Why do you need construction all risk insurance?

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.

  1. Location Risks: Fire, Lighting, Theft, Burglary & Housebreaking.
  2. Testing and Commissioning Risks*: Failure of Safety Devices, Leakage of Electricity, Insulation failure, Short circuit, explosion.
  3. Act of God: Storm, Tempest, Hurricane, Flood, Inundation, Subsidence, Landslide, Rockslide, earthquake.
  4. Handling Risks: Impact from falling objects, Collision, Failure of Cranes or Tackles etc.
  5. Risk of Human Element: Carelessness, Negligence, Faults in Erection/Construction, Strike & Riot, Malicious damage, Terrorism.
  6. Testing Perils: Maximum value at risk.
  1. War & Allied Perils.
  2. Wilful act or wilful negligence of Insured/ his representatives.
  3. Excess in respect of each claim as stated in the policy.
  4. Normal wear and tear, gradual deterioration, lack of use, obsolescence, rust, etc.
  5. Any damages/ penalties on account of the Insured of the terms of delivery/ completion under his contract of construction.
  6. Nuclear & Allied Perils.
  7. Cessation of work.
  8. Losses discovered only at the time of taking an inventory.
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