{"id":1389,"date":"2017-08-15T12:08:44","date_gmt":"2017-08-15T12:08:44","guid":{"rendered":"https:\/\/pamstaging.securenow.in\/insuropedia\/?p=1389"},"modified":"2026-07-08T09:11:21","modified_gmt":"2026-07-08T09:11:21","slug":"what-is-claims-series-clauses-construction-risk-policy","status":"publish","type":"post","link":"https:\/\/securenow.in\/insuropedia\/what-is-claims-series-clauses-construction-risk-policy\/","title":{"rendered":"What is Claims Series Clause in Construction all Risk Policy?"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><p>As per the claims series clause in <a href=\"https:\/\/securenow.in\/property-insurance\/contractors-all-risk-insurance-policy\">Construction all Risk Policy<\/a>, where a series of losses or damages or bodily injuries and deaths happen due to factors that are directly or indirectly related, then claims for such losses shall be added together and treated as one claim. We consider such claims as made at a single point in time when the first claim was submitted in writing.<\/p>\n<h2 data-path-to-node=\"3\">Key Takeaways<\/h2>\n<ul data-path-to-node=\"4\">\n<li>\n<p data-path-to-node=\"4,0,0\"><b data-path-to-node=\"4,0,0\" data-index-in-node=\"0\">The Unified Claim Principle:<\/b> Under the claims series clause in a construction all-risk policy, a sequence of interrelated physical losses, bodily injuries, or deaths are legally added together and treated as one single claim.<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"4,1,0\"><b data-path-to-node=\"4,1,0\" data-index-in-node=\"0\">The Single Deductible Benefit:<\/b> Aggregating a series of sequential damages under a single claim head means the deductible is applied to the aggregate amount, protecting the builder from paying multiple individual deductibles.<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"4,2,0\"><b data-path-to-node=\"4,2,0\" data-index-in-node=\"0\">The Three-Year Absolute Cutoff:<\/b> Underwriters enforce a strict statutory timeline on systemic structural failures; any claims filed more than 3 years after the first claim of the series will not be covered.<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"4,3,0\"><b data-path-to-node=\"4,3,0\" data-index-in-node=\"0\">The Importance of Broad Policy Wording:<\/b> Identifying and aggregating multi-party losses depends heavily on the policy text; using broad terms to describe the unifying factor or common origin expedites the claims consolidation process.<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"4,4,0\"><b data-path-to-node=\"4,4,0\" data-index-in-node=\"0\">Latent Defect Discoveries:<\/b> Severe natural catastrophes often trigger a plurality of losses that surface over time, allowing late-emerging damages to be successfully backdated to the first written submission date.<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"4,5,0\"><b data-path-to-node=\"4,5,0\" data-index-in-node=\"0\">The Multi Deductible Penalty:<\/b> If an independent insurance surveyor finds no common factor or structural unity to combine multiple claims, the contractor is legally bound to clear separate deductible payments for every individual incident.<\/p>\n<\/li>\n<\/ul>\n<div class=\"react-scroll-to-bottom--css-aegbi-1n7m0yu\">\n<div class=\"flex flex-col text-sm pb-9\">\n<div class=\"w-full text-token-text-primary sm:AIPRM__conversation__response\" data-testid=\"conversation-turn-431\">\n<div class=\"px-4 py-2 justify-center text-base md:gap-6 m-auto\">\n<div class=\"flex flex-1 text-base mx-auto gap-3 md:px-5 lg:px-1 xl:px-5 md:max-w-3xl group final-completion\">\n<div class=\"relative flex w-full flex-col agent-turn\">\n<div class=\"flex-col gap-1 md:gap-3\">\n<div class=\"flex flex-grow flex-col max-w-full\">\n<div class=\"min-h-[20px] text-message flex flex-col items-start gap-3 whitespace-pre-wrap break-words [.text-message+&amp;]:mt-5 overflow-x-auto\" data-message-author-role=\"assistant\" data-message-id=\"907789ad-9fbf-4869-8d28-ba137fc88844\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light AIPRM__conversation__response\">\n<p>A claim for a series would define as the series of two or more claims arising from a single common clause, i.e., a unifying factor of some kind, which occurs, for example.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<ul>\n<li>Due to the same fault in designing, manufacturing, or instructing for use or product labeling<\/li>\n<li>Due to the supply of the same products\/services showing some defects<\/li>\n<\/ul>\n<div class=\"react-scroll-to-bottom--css-aegbi-1n7m0yu\">\n<div class=\"flex flex-col text-sm pb-9\">\n<div class=\"w-full text-token-text-primary sm:AIPRM__conversation__response\" data-testid=\"conversation-turn-433\">\n<div class=\"px-4 py-2 justify-center text-base md:gap-6 m-auto\">\n<div class=\"flex flex-1 text-base mx-auto gap-3 md:px-5 lg:px-1 xl:px-5 md:max-w-3xl group final-completion\">\n<div class=\"relative flex w-full flex-col agent-turn\">\n<div class=\"flex-col gap-1 md:gap-3\">\n<div class=\"flex flex-grow flex-col max-w-full\">\n<div class=\"min-h-[20px] text-message flex flex-col items-start gap-3 whitespace-pre-wrap break-words [.text-message+&amp;]:mt-5 overflow-x-auto\" data-message-author-role=\"assistant\" data-message-id=\"efc27881-92d3-4243-b526-429c51b2689f\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light AIPRM__conversation__response\">\n<p>In those situations where the series of claims is aggregated under a single claim head, the deductible is also applied to the aggregate amount and not to the individual claims.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"mt-1 flex justify-start gap-3 empty:hidden\">\n<div class=\"text-gray-400 flex self-end lg:self-center items-center justify-center lg:justify-start mt-0 -ml-1 h-7 gap-[2px] visible\"><strong>Read More: <a href=\"https:\/\/securenow.in\/insuropedia\/what-is-construction-all-risk-insurance\/\">What is Construction All Risk Insurance?<\/a><\/strong><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"react-scroll-to-bottom--css-aegbi-1n7m0yu\">\n<div class=\"flex flex-col text-sm pb-9\">\n<div class=\"w-full text-token-text-primary sm:AIPRM__conversation__response\" data-testid=\"conversation-turn-423\">\n<div class=\"px-4 py-2 justify-center text-base md:gap-6 m-auto\">\n<div class=\"flex flex-1 text-base mx-auto gap-3 md:px-5 lg:px-1 xl:px-5 md:max-w-3xl group final-completion\">\n<div class=\"relative flex w-full flex-col agent-turn\">\n<div class=\"flex-col gap-1 md:gap-3\">\n<div class=\"flex flex-grow flex-col max-w-full\">\n<div class=\"min-h-[20px] text-message flex flex-col items-start gap-3 whitespace-pre-wrap break-words [.text-message+&amp;]:mt-5 overflow-x-auto\" data-message-author-role=\"assistant\" data-message-id=\"d6e2e07d-016f-4165-b23c-535f74fa6b6d\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<div class=\"react-scroll-to-bottom--css-aegbi-1n7m0yu\">\n<div class=\"flex flex-col text-sm pb-9\">\n<div class=\"w-full text-token-text-primary sm:AIPRM__conversation__response\" data-testid=\"conversation-turn-435\">\n<div class=\"px-4 py-2 justify-center text-base md:gap-6 m-auto\">\n<div class=\"flex flex-1 text-base mx-auto gap-3 md:px-5 lg:px-1 xl:px-5 md:max-w-3xl group final-completion\">\n<div class=\"relative flex w-full flex-col agent-turn\">\n<div class=\"flex-col gap-1 md:gap-3\">\n<div class=\"flex flex-grow flex-col max-w-full\">\n<div class=\"min-h-[20px] text-message flex flex-col items-start gap-3 whitespace-pre-wrap break-words [.text-message+&amp;]:mt-5 overflow-x-auto\" data-message-author-role=\"assistant\" data-message-id=\"67a6af5a-a3d0-49a7-9286-49a40601171b\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<div class=\"react-scroll-to-bottom--css-aegbi-1n7m0yu\">\n<div class=\"flex flex-col text-sm pb-9\">\n<div class=\"w-full text-token-text-primary sm:AIPRM__conversation__response\" data-testid=\"conversation-turn-439\">\n<div class=\"px-4 py-2 justify-center text-base md:gap-6 m-auto\">\n<div class=\"flex flex-1 text-base mx-auto gap-3 md:px-5 lg:px-1 xl:px-5 md:max-w-3xl group final-completion\">\n<div class=\"relative flex w-full flex-col agent-turn\">\n<div class=\"flex-col gap-1 md:gap-3\">\n<div class=\"flex flex-grow flex-col max-w-full\">\n<div class=\"min-h-[20px] text-message flex flex-col items-start gap-3 whitespace-pre-wrap break-words [.text-message+&amp;]:mt-5 overflow-x-auto\" data-message-author-role=\"assistant\" data-message-id=\"d0eee7e4-7ebe-454d-bba2-03bba3aca427\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<div class=\"flex flex-grow flex-col max-w-full\">\n<div class=\"min-h-[20px] text-message flex flex-col items-start gap-3 whitespace-pre-wrap break-words [.text-message+&amp;]:mt-5 overflow-x-auto\" data-message-author-role=\"assistant\" data-message-id=\"a0738bf2-4a21-4369-953a-93b68800c879\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light AIPRM__conversation__response\">\n<div class=\"flex flex-grow flex-col max-w-full\">\n<div class=\"min-h-[20px] text-message flex flex-col items-start gap-3 whitespace-pre-wrap break-words [.text-message+&amp;]:mt-5 overflow-x-auto\" data-message-author-role=\"assistant\" data-message-id=\"39f5b4fd-b325-472b-a6b8-921c83887b53\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<p>However, claims stemming from a single specific cause and filed more than 3 years after the first claim of the series will not be covered.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"mt-1 flex justify-start gap-3 empty:hidden\">\n<div class=\"text-xs flex items-center justify-center gap-1 self-center visible\">Many times, it is the unifying factor that needs to look into. In such a situation, it depends on the precise wording of the policy document which clearly defines the unifying factor. Here the factor is often a common origin of some act or event which links various claims.<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"react-scroll-to-bottom--css-aegbi-1n7m0yu\">\n<div class=\"flex flex-col text-sm pb-9\">\n<div class=\"w-full text-token-text-primary sm:AIPRM__conversation__response\" data-testid=\"conversation-turn-419\">\n<div class=\"px-4 py-2 justify-center text-base md:gap-6 m-auto\">\n<div class=\"flex flex-1 text-base mx-auto gap-3 md:px-5 lg:px-1 xl:px-5 md:max-w-3xl group final-completion\">\n<div class=\"relative flex w-full flex-col agent-turn\">\n<div class=\"flex-col gap-1 md:gap-3\">\n<div class=\"flex flex-grow flex-col max-w-full\">\n<div class=\"min-h-[20px] text-message flex flex-col items-start gap-3 whitespace-pre-wrap break-words [.text-message+&amp;]:mt-5 overflow-x-auto\" data-message-author-role=\"assistant\" data-message-id=\"5379e331-f74a-49c0-8f93-8704c0bff340\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light AIPRM__conversation__response\">\n<p>In situations where the description of the event or act is specific, aggregating the claims will not be easy. However, employing broad terms to describe unifying acts expedites the identification of the claims requiring aggregation.<\/p>\n<div class=\"react-scroll-to-bottom--css-aegbi-1n7m0yu\">\n<div class=\"flex flex-col text-sm pb-9\">\n<div class=\"w-full text-token-text-primary sm:AIPRM__conversation__response\" data-testid=\"conversation-turn-437\">\n<div class=\"px-4 py-2 justify-center text-base md:gap-6 m-auto\">\n<div class=\"flex flex-1 text-base mx-auto gap-3 md:px-5 lg:px-1 xl:px-5 md:max-w-3xl group final-completion\">\n<div class=\"relative flex w-full flex-col agent-turn\">\n<div class=\"flex-col gap-1 md:gap-3\">\n<div class=\"mt-1 flex justify-start gap-3 empty:hidden\">\n<div class=\"text-gray-400 flex self-end lg:self-center items-center justify-center lg:justify-start mt-0 -ml-1 h-7 gap-[2px] visible\">An occurrence that is mainly not the same as a loss as one occurrence may lead to a plurality of losses. Nevertheless, it is essential to carefully scrutinize losses circumstances to know whether they involve the unity that justifies their being arising out of the occurrence.<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<h2><strong>Case: Claims Series Clause in Construction all Risk Policy<\/strong><\/h2>\n<p>Incepted in 2013, L.J Work had established a name for itself in the construction sector. Since its formation, the company has successfully completed various construction projects in Delhi and Pune. Though the company always acts diligently, it has also bought a <a href=\"https:\/\/securenow.in\/property-insurance\/contractors-all-risk-insurance-policy\"><strong>construction all-risk insurance policy<\/strong><\/a> to get financial coverage in case any loss or damage happens.<\/p>\n<p>Last year, when the company was building a five-story building in Pune, an earthquake happened and damaged two pillars of the under-constructed building. Thankfully, there was no loss of life, and the company approached its construction all-risk insurer to get coverage for the financial losses or damages to the building.<\/p>\n<p>A few weeks later, the engineer at the construction site found some cracks in the roof as well. The engineer called for an investigation and the investigation results found that the damage occurred due to the impact of earthquake.<\/p>\n<p>Earlier, they were minor and therefore did not come into notice but now they became visible in few weeks period.<\/p>\n<div class=\"flex flex-grow flex-col max-w-full\">\n<div class=\"min-h-[20px] text-message flex flex-col items-start gap-3 whitespace-pre-wrap break-words [.text-message+&amp;]:mt-5 overflow-x-auto\" data-message-author-role=\"assistant\" data-message-id=\"c623fcd6-9e33-4e64-ae0d-9c704d96889b\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light AIPRM__conversation__response\">\n<p>When L.J Work reported the second loss to the insurer, the construction all-risk insurance company treated both incidents as one claim. The first claim resulted from an earthquake, which also caused damage to other parts of the building, discovered later on. It means the peril was the same in both events and there were a series of claims.<\/p>\n<h3>Summary Table: Underwriting Framework of the Claims Series Clause<\/h3>\n<table data-path-to-node=\"1\">\n<thead>\n<tr>\n<td><strong>Underwriting Operational Pillar<\/strong><\/td>\n<td><strong>Contractual Inclusions &amp; Aggregation Triggers<\/strong><\/td>\n<td><strong>Strict Exclusions &amp; Time Blindspots<\/strong><\/td>\n<td><strong>Financial Deductible Calculations<\/strong><\/td>\n<td><strong>Case Study Structural Context<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><span data-path-to-node=\"1,1,0,0\"><b data-path-to-node=\"1,1,0,0\" data-index-in-node=\"0\">Systemic Failure Aggregation<\/b><\/span><\/td>\n<td><span data-path-to-node=\"1,1,1,0\">Multiple sequential losses arising from a single common cause (e.g., identical engineering design flaw, production error, or label fault).<\/span><\/td>\n<td><span data-path-to-node=\"1,1,2,0\">Disconnected on-site accidents that lack a distinct, traceable unifying act or common origin event.<\/span><\/td>\n<td><span data-path-to-node=\"1,1,3,0\">A single, unified deductible threshold is applied directly to the aggregate claim value.<\/span><\/td>\n<td><span data-path-to-node=\"1,1,4,0\">An engineering firm in Pune secured its five-story building development via a CAR policy.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span data-path-to-node=\"1,2,0,0\"><b data-path-to-node=\"1,2,0,0\" data-index-in-node=\"0\">Catastrophic Event Tracking<\/b><\/span><\/td>\n<td><span data-path-to-node=\"1,2,1,0\">Consecutive physical damages discovered in stages but triggered by the same initial peril <i data-path-to-node=\"1,2,1,0\" data-index-in-node=\"90\">(e.g., structural cracks following a tremor)<\/i>.<\/span><\/td>\n<td><span data-path-to-node=\"1,2,2,0\">Overlapping claims without an explicit chronological or causal tie to the primary incident.<\/span><\/td>\n<td><span data-path-to-node=\"1,2,3,0\">Eliminates the administrative requirement to clear separate deductibles for every individual damage report.<\/span><\/td>\n<td><span data-path-to-node=\"1,2,4,0\">A major earthquake caused direct physical impact to two vital structural pillars.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span data-path-to-node=\"1,3,0,0\"><b data-path-to-node=\"1,3,0,0\" data-index-in-node=\"0\">Chronological Time Anchoring<\/b><\/span><\/td>\n<td><span data-path-to-node=\"1,3,1,0\">Treats the entire combined series as a single loss made at the single point in time when the first claim was submitted in writing.<\/span><\/td>\n<td><span data-path-to-node=\"1,3,2,0\">Any subsequent loss stemming from the same cause filed more than 3 years after the first claim is completely denied.<\/span><\/td>\n<td><span data-path-to-node=\"1,3,3,0\">Protects the project\u2019s liquid capital from being drained by repeating individual out-of-pocket expenses.<\/span><\/td>\n<td><span data-path-to-node=\"1,3,4,0\">Minor roof fractures caused by the same seismic shifts became visible weeks later.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<p>L.J Work\u2019s construction all-risk insurance policy also comes with a deductible limit of Rs 50,000. In this case, when 2 claims were aggregated under a single claim, only one deductible needed to be paid. The insurer settled the claim by deducting Rs 50,000 as a deductible, which L.J Work paid.<\/p>\n<div class=\"mt-1 flex justify-start gap-3 empty:hidden\">\n<div class=\"text-xs flex items-center justify-center gap-1 self-center visible\">\n<div class=\"react-scroll-to-bottom--css-aegbi-1n7m0yu\">\n<div class=\"flex flex-col text-sm pb-9\">\n<div class=\"w-full text-token-text-primary sm:AIPRM__conversation__response\" data-testid=\"conversation-turn-427\">\n<div class=\"px-4 py-2 justify-center text-base md:gap-6 m-auto\">\n<div class=\"flex flex-1 text-base mx-auto gap-3 md:px-5 lg:px-1 xl:px-5 md:max-w-3xl group final-completion\">\n<div class=\"relative flex w-full flex-col agent-turn\">\n<div class=\"flex-col gap-1 md:gap-3\">\n<div class=\"flex flex-grow flex-col max-w-full\">\n<div class=\"min-h-[20px] text-message flex flex-col items-start gap-3 whitespace-pre-wrap break-words [.text-message+&amp;]:mt-5 overflow-x-auto\" data-message-author-role=\"assistant\" data-message-id=\"5655ad0d-b6d4-4f05-8f85-6785b7400b7e\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light AIPRM__conversation__response\">\n<p>If there&#8217;s no common factor to combine multiple claims, the insurer will ask for deductible payment for each claim separately. In other words, if L.J Work&#8217;s claims were deemed distinct, the insurer would have requested separate deductibles for each claim.<\/p>\n<h3 data-path-to-node=\"6\">Frequently Asked Questions (FAQs)<\/h3>\n<h4 data-path-to-node=\"7\"><b data-path-to-node=\"7\" data-index-in-node=\"0\">1. What is a claims series clause in a construction all risk insurance policy?<\/b><\/h4>\n<p data-path-to-node=\"7\"><strong>A)<\/strong> A claims series clause is a fundamental commercial underwriting provision in a Construction All Risk (CAR) policy that allows a business to combine a sequence of separate property losses, bodily injuries, or deaths into a single claim. This consolidation is permitted provided all the individual damages arise directly or indirectly from a single common cause or unifying operational factor.<\/p>\n<h4 data-path-to-node=\"8\"><b data-path-to-node=\"8\" data-index-in-node=\"0\">2. How does a single common cause trigger the aggregation of construction insurance claims?<\/b><\/h4>\n<p data-path-to-node=\"8\"><strong>A)<\/strong> Claims aggregation is triggered when an independent insurance adjuster traces multiple physical failures back to a single common origin or act. Standard industrial examples include consecutive structural failures due to the same fault in designing, manufacturing, or instructing for use, or an ongoing series of site defects caused by the supply of identical compromised materials and services.<\/p>\n<h4 data-path-to-node=\"9\"><b data-path-to-node=\"9\" data-index-in-node=\"0\">3. How are deductibles calculated when multiple property claims are aggregated?<\/b><\/h4>\n<p data-path-to-node=\"9\"><strong>A)<\/strong> When a series of losses are successfully combined under the claims series framework, the policyholder receives significant financial relief. Instead of paying a separate out-of-pocket deductible for every individual piece of damaged machinery or structural zone, the deductible limit is applied only once to the final aggregate claim amount.<\/p>\n<h4 data-path-to-node=\"10\"><b data-path-to-node=\"10\" data-index-in-node=\"0\">4. What is the maximum time limit allowed to report subsequent losses under a claims series?<\/b><\/h4>\n<p data-path-to-node=\"10\"><strong>A)<\/strong> The policy enforces an absolute chronological boundary to prevent long-tail liabilities from draining general insurance capital pools. Any subsequent property damage or structural failure stemming from the original common cause that is filed more than 3 years after the first claim of the series will face automatic claim rejection.<\/p>\n<h4 data-path-to-node=\"11\"><b data-path-to-node=\"11\" data-index-in-node=\"0\">5. How do underwriters determine the date of loss for an ongoing series of structural failures?<\/b><\/h4>\n<p data-path-to-node=\"11\"><strong>A)<\/strong> To simplify policy administration and track aggregate limits, the insurance company anchors the entire chain of events to a single timeline milestone. All subsequent damages discovered throughout the project cycle are considered as made at a single point in time when the first claim was submitted in writing to the insurer.<\/p>\n<h4 data-path-to-node=\"12\"><b data-path-to-node=\"12\" data-index-in-node=\"0\">6. What happens if an insurance surveyor finds no common factor between two site accidents?<\/b><\/h4>\n<p data-path-to-node=\"12\"><strong>A)<\/strong> If an independent forensic survey rules that the individual losses lack a clear unity or common origin\u2014such as an earthquake structural crack occurring in the same month as an unrelated machinery theft\u2014the insurer will treat them as completely separate occurrences. In this scenario, the builder must pay a separate deductible for each claim out of pocket.<\/p>\n<p><script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What is a claims series clause in a construction all risk insurance policy?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"A claims series clause is a fundamental commercial underwriting provision in a Construction All Risk (CAR) policy that allows a business to combine a sequence of separate property losses, bodily injuries, or deaths into a single claim. This consolidation is permitted provided all the individual damages arise directly or indirectly from a single common cause or unifying operational factor.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"How does a single common cause trigger the aggregation of construction insurance claims?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Claims aggregation is triggered when an independent insurance adjuster traces multiple physical failures back to a single common origin or act. Standard industrial examples include consecutive structural failures due to the same fault in designing, manufacturing, or instructing for use, or an ongoing series of site defects caused by the supply of identical compromised materials and services.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"How are deductibles calculated when multiple property claims are aggregated?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"When a series of losses are successfully combined under the claims series framework, the policyholder receives significant financial relief. Instead of paying a separate out-of-pocket deductible for every individual piece of damaged machinery or structural zone, the deductible limit is applied only once to the final aggregate claim amount.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What is the maximum time limit allowed to report subsequent losses under a claims series?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"The policy enforces an absolute chronological boundary to prevent long-tail liabilities from draining general insurance capital pools. Any subsequent property damage or structural failure stemming from the original common cause that is filed more than 3 years after the first claim of the series will face automatic claim rejection.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"How do underwriters determine the date of loss for an ongoing series of structural failures?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"To simplify policy administration and track aggregate limits, the insurance company anchors the entire chain of events to a single timeline milestone. All subsequent damages discovered throughout the project cycle are considered as made at a single point in time when the first claim was submitted in writing to the insurer.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What happens if an insurance surveyor finds no common factor between two site accidents?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"If an independent forensic survey rules that the individual losses lack a clear unity or common origin\u2014such as an earthquake structural crack occurring in the same month as an unrelated machinery theft\u2014the insurer will treat them as completely separate occurrences. In this scenario, the builder must pay a separate deductible for each claim out of pocket.\"\n      }\n    }\n  ]\n}\n<\/script><\/p>\n<h4><b>About The Author<\/b><\/h4>\n<p><strong>Shivani<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">MBA Insurance and Risk<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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. <\/span><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>As per the claims series clause in Construction all Risk Policy, where a series of losses or damages or bodily injuries and deaths happen due to factors that are directly or indirectly related, then claims for such losses shall be added together and treated as one claim. We consider such claims as made at a [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_lmt_disableupdate":"no","_lmt_disable":"no","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6],"tags":[194],"class_list":["post-1389","post","type-post","status-publish","format-standard","hentry","category-property-insurance","tag-construction-all-risks-insurance"],"acf":[],"modified_by":"SecureNow","_links":{"self":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/1389","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/comments?post=1389"}],"version-history":[{"count":14,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/1389\/revisions"}],"predecessor-version":[{"id":36500,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/1389\/revisions\/36500"}],"wp:attachment":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/media?parent=1389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/categories?post=1389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/tags?post=1389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}