Property Insurance

Sidebar_image1 Sidebar_image1 Sidebar_image1
1 3 2 4 5 6
Sidebar_image1 Sidebar_image1 Sidebar_image1

Are you aware that more than 60 accidents have resulted in approximately 47 deaths and 35 injuries? It occurred on the civil project sites of four metro projects since 2013? Therefore, in face of the escalating number of accidents on project sites. It’s crucial to have safeguard through Construction All Risk Insurance.

construction all risk policy

A construction site is susceptible to various kinds of losses or damages. Any loss can mount from theft, pilferage, legal claims, and much more. As a contractor, it becomes necessary for you to comply with the deadlines.

However, any risks can arise to disrupt the smooth functioning of the entire construction work process. Here this policy, also called construction insurance, can play a major role.

This policy offers comprehensive cover by covering accidents that may happen during a project. It means the policy includes things brought to the project site for the contract and temporary work built on-site. It means the policy includes things brought to the project site for the contract and temporary work built on-site.

The policy also gives protection against losses or damages caused to property from fire under a fire insurance policy. Construction all-risk insurance also covers it.

Overall, purpose of the policy is to give financial protection to civil engineering contracts in event of any accident.

It is a comprehensive insurance policy that covers various civil engineering projects. Some of these projects comprise buildings, water tanks, sewage treatment plants, flyovers, airports etc.

This policy protects contract workers from losses while doing civil engineering work, unless the insurance specifically says otherwise.

All Risk Insurance mainly cover the following two areas of damage-

  • Section 1: Material Damage= It covers losses or damages or destruction of the property.
  • Section 2 discusses third-party liability, which protects contractors from legal responsibility for harm or damage caused to others.

You can further extend the coverage to include the interests of manufacturers, suppliers, contractors, and subcontractors. Additionally, you can expand the policy to cover the following events:

  • Debris removal
  • Damage to surrounding property
  • Earthquake
  • Third-party liability
  • Provision for escalation
  • Terrorism
  • Air freight
  • Escalation
  • Additional custom duty
  • Loss because of breakage of glass
  • Maintenance visits

Furthermore, the policy holder is subject to compulsory excess under this policy. The type of building project determines the applicable excess.

This means that there is any loss. Policy holder is responsible for paying a portion of claim, and insurer will not settle the entire claim.

Some events not covered under the all-risk insurance are:

  • Loss or damage because of willful misconduct
  • Loss or damage because of faulty design
  • Cessation of work, partial or total
  • Deductible as mentioned in the policy document

How to determined the Sum Insured?

The insurance company decides how much coverage to provide in the contractor’s all-risk policy by looking at things. Like the type of project, the insured amount, how long the project will last, and the extra amount chosen by the policy holder. The insurer allows paying the premium in installments if the tenure of the policy is more than one year.


Established in 2012, T.S Construction enjoys its presence in different cities in India. Recently, the company has bagged a contract for constructing a flyover in Delhi. The company should buy a construction all-risk insurance policy. It will help T.S Construction in case any loss or damage occurred at the construction site.

The government has given three years of time to build a flyover and T.S Construction has to comply with this deadline. However, in the case of any loss or damage, the company might find it difficult to honor the deadline. So, choosing a complete policy that assures compensation in case of an accident is a sensible decision. And it will ensure that the company meets deadlines and that any accident doesn’t derail its work.

About The Author


MBA Insurance and Risk

She has a passion for property insurance and a wealth of experience in the field, Shivani has been a valuable contributor to SecureNow for the past six years. As a seasoned writer, they specialize in crafting insightful articles and engaging blogs that educate and inform readers about the intricacies of property insurance. She brings a unique blend of expertise and practical knowledge to their writing, drawing from her extensive background in the insurance industry. Having worked in various capacities within the sector, she deeply understands the challenges and opportunities facing property owners and insurers alike.