ImageContractors All Risk Insurance Policy - Coverage of Construction Policy
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Advantages of Construction All Risk Insurance

Construction Site Protection

Contractors all risk policy covers damages to under construction civil projects by sudden, and accidental causes. It also covers the damage to the material purchased for the project at the site.

Third Party Liability Coverage

Construction all risk insurance covers third party property damage that may arise due to accident at site. Policy also covers liability for fatal or non-fatal injury to persons other than employees.

Customised Cover

We customise contractors all risk insurance policy according to your requirements. For example, construction equipment like scaffolding and shuttering materials can be covered in policy if required.

Limited Exclusions

Contractors all risk insurance has limited exclusions such as willful negligence, and faulty workmanship. All other risks are covered. This gives a wide ambit of coverage for unpredictable risks

Benefits of Construction All Risk Insurance

All Risk Cover for Construction Projects

  • Our construction policy provides all risk cover for under construction projects from perils including fire, explosion, impact damage and collapse
  • For projects with more than 100 crore sum assured, policy could be enhanced to cover design defects
  • Natural catastrophes such as earthquake, storm, flood and lightning are covered under the policy

Advance Loss of Profits

  • Advance loss of profits (ALOP) is an add-on coverage to Construction All Risk policy that can indemnify loss of profits due to delay in start-up of the project due to a covered peril
  • Loss of net profit and standing expenses of the project are considered to arrive at sum assured for ALOP
  • A standard excess in terms of number of days is applicable before the claim is triggered

Add-on Covers

  • Contractor's all risk policy offers several add-on coverages that are related to a claim under the main policy e.g., owners' surrouding property
  • Other add-ons include loss of documents, escalation in sum assured, removal of debris, additional custom duty
  • Each add-on is priced separately; though at higher sum assured, a few add-ons could be availed at nominal cost

Frequently Asked Questions

Construction All Risk Insurance covers damage to the civil construction projects such as, residential and office buildings, hospitals, schools, theaters, roads, railways, bridges, tunnels, airports, dams, weirs, irrigation and drainage facilities, canals and ports. Policy also covers faults in project and the temporary work erected or constructed on site.
Wide range of additional extensions are available under construction all risk policy such as coverage of construction equipments like block pulleys, drilling machine and welding machines, maintenance visit or extended maintenance cover, debris removal expenses, air freight & express freight, free automatic reinstatement upto 10%
In contractor all risk policy, if a project gets extended the same can be endorsed under the policy. You need to inform the insurer in advance about the extension. Additional premium would be charged for the incremental period to extend coverage.
In construction all risk policy, design defect is an exclusion. However, our team can negotiate with various insurance companies and get this design defect coverage added in your policy at added premium. In our recommendation, every contractor or developer should cover design defect in their policy as there are high chances of claims arising due to defect in design at the initial stage of the project.


What is declaration clause in Construction all risk policy?

Construction all risk insurance policy offers to cover the assets and liabilities of the contractor during the construction work. The policy is arranged to cover the assets like materials, tools, plant and equipment from any loss or damage. It also covers the contractor against the liability arising from undertaking the construction work....
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Does the Construction All Risk Policy cover damage to surrounding structures?

Yes, the construction all risk insurance policy covers damage to surrounding structures as well. Loss or damages to property which are located on or adjacent to the construction site, belong or held in custody or control of the policyholder shall be covered if the loss/damage occurs directly due to those construction items which are....
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What is Claims Series Clauses in Construction all Risk Policy?

As per the claim series clause, where a series of losses or damages or bodily injuries and deaths happen due to factors which are directly or indirectly related, then claims for such losses shall be added together and treated as one claim. Such claims shall be deemed to have been made at a single point of time when the first claim was made....
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