The construction site is vulnerable to various perils like fire, earthquake, war, etc. Many times, even safety precautions fail to prevent these accidents. To curtail the impact of accidents, it is essential to buy construction all risk insurance policy to cover risks which may arise at a construction site. Here is what you should know before buying the policy.
A Construction All Risk Insurance Policy (CAR) or Contractors all Risk policy is a type of insurance that provides coverage for construction projects against loss or damage caused by a wide range of risks, including natural disasters, theft, and accidental damage. This type of insurance typically covers the cost of repairs or rebuilding in the event of a loss, as well as any additional costs incurred as a result of the loss, such as loss of income or increased construction costs. The policy generally covers all stages of the construction project, from pre-construction activities to final completion. It is important to note that CAR policies have exclusions, such as war, nuclear, and earth movement risks, so it’s important to read the policy carefully and understand what it does and does not cover. It’s also crucial to have a proper documentation and record of any damages and losses that occur during the construction process to make a successful claim.
