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The Benefits of Contractors All Risk Insurance Policy

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

Quick Guide to Contractors All Risk Insurance Policy

What Is Contractors All Risk (CAR) Insurance Policy?

Contractors' all risks (CAR) insurance is a commercial insurance policy that will provide coverage for property damage and third-party injury or damage claims.

Property damage such as improper construction of structures, damage during a renovation and/or damage to temporary work erected on-site are all covered under a contractors all risk insurance policy. Injury or loss to third-parties for example: subcontractors getting injured working at the construction site, are also covered.

A CAR insurance policy covers for risks associated with civil construction business. It bridges the risks associated with property damage and damage to a third-party into a common policy to cover the gap between exclusions which would otherwise exist if there were separate policies. CAR insurance policy is commonly taken for construction projects as buildings, water tanks, sewage treatment plans, flyovers, and airports.

Why is Contractors All Risk Insurance Policy Required?

The intent of having such an insurance to get cover for all types of civil works, be it small or large, that are part of a civil construction. A contractor's all risk insurance covers various civil structures from damages such as fire, water, storm, impact, landslide and so on. This policy also covers for the third-party liabilities such as damage to life or property of a third-person arising due to your construction business. You can also modify such a policy to get coverage for add-ons such as owner’s property, vital construction documents and so on.

Benefits of Contractors All Risk Insurance Policy

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’ surrounding 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

Coverage of Construction Policy

There are majorly two types of risks covered under a contractor all risk policy

  • Loss or damage caused to the construction project
  • Loss or damage caused to a third-party involved in your project

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 projects and the temporary work erected or constructed on site.

Who can take Contractors/Construction All Risk Insurance Policy?

A construction all risk insurance policy is specifically designed for people who are directly or indirectly involved in civil construction businesses or projects. Some of these named occupations are: contractors, sub-contractors or firms commissioned to carry out work, owner or purchaser, and companies financing the project.

Construction all risk insurance is also a must for someone such as a contractor or a principal developer who wants to have their hands on a new project. This insurance will cover a number of risks which can happen during the construction.

Claim Process of Contractors All Risk Insurance Policy

You should immediately inform our SecureNow team via call or email, in case any claim is encountered under the contractor all risk insurance such as: damage to the project site and so on. You will have to share the nature and extent of the loss or damage to the project. You’ll be suggested with further steps by a claims expert. Meanwhile, you should take all the possible steps to minimize the loss. We will inform the claim case to the insurer and they will appoint a surveyor for the inspection of the site. Our team will work with you and guide you towards all the necessary documents and steps to be followed, required by the insurance company, during the entire process.

Best Contractors/Construction All Risk Insurance Policy in India

Contractors all risk insurance policy is a highly personalized product which varies with requirements and the insurer. Some insurers in India provide such a personalized product and we deal with all of them. Top insurers dealing with builders risk insurance coverages are: HDFC Ergo, ICICI Lombard, TATA AIG, Orinetal Insurance and National Insurance.

To be able to get the best contractors all risk insurance policy in India it’s important that you understand the nuances associated with it. SecureNow, as your insurance advisor, will help you identify the right kind of product for your business needs. We request you to share your details on the form above and fill in the basic requirements such as type of building, value of contract and tenure. We’ll show you the basic premium for your insurance that’ll give you an idea of the premium associated with the policy you choose. Click on “buy now” for an insurance expert to assist you with further process by understanding your requirements well.

Documents Required for Contractors All Risk Insurance Policy

The common documents required for filing a claim under such an insurance policy are

  • Duly signed and filled claim form
  • Letter of award and bill of quantity, purchase or delivery order details
  • Damage report on extent of damage
  • Estimated cost of repair or lost product.

Additionally, based on the type of claim you may have to submit some additional documents as asked by the insurer and surveyor during the course of the process.

Frequently Asked Questions

Like any other insurance policy, under a contractor all risk insurance there are mostly two parties involved, the first-party is the policyholder or the insured and the second-party is the policy provider or the insurer. Additionally, such an insurance policy also covers for a third-party liability, i.e., covers for any legal liability related to accidental damage or loss caused to a third-person.
Yes, contractors all risk policy covers for theft also that may happen in the construction or project site. This insurance can protect construction business owners from many other financial losses also.
Contractors all risk insurance is different from a professional indemnity insurance as the former can cover for damages to insured’s property and damages to third-party or their property due the insured’s construction work, while the latter only covers for legal liabilities for defective services or negligence of the professional or their subordinates.
A contractors all risk insurance insures all types of civil works ranging from small buildings to massive structures from damages such as fire, water, storm, impact, landslide and so on. Under this policy the coverage starts right from the first delivery of materials at the contract site and continues for the entire period of contract.

What Our Customers Are Saying


Our construction company is very pleased with SecureNow’s contractor all risk policy. It covers all our bases and is easy to manage.


The contractors all risk insurance from SecureNow is fantastic. The claims process is quick and hassle-free, and the coverage is thorough.


SecureNow’s construction insurance has been a lifesaver for our projects. The coverage is extensive and the service is excellent.


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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