Contractors all risks (CAR) insurance:

What is contractors all risks insurance?

This covers all risks arising out of the construction of buildings or structures unless specifically excluded in our policy. Any building or engineering project is protected against accidents resulting in physical damage to or the destruction of works in progress, construction plant and or construction machinery on the site.

In addition to this, third party liability arising out of the construction can be covered as well.

Why do you need contractors all risks insurance?

As a rule, the contractor working on a building site is exposed to unknown and unforeseeable dangers, such as subsidence, ground water, flood and inundation, as well as unfavorable weather conditions which may cause damage. In addition, you have to contend with the potential liability claims that may be caused to other people (technically called third parties). As a result of such exposure, every project owner, consulting engineers, architect and financier should have this important cover taken up before any works are commenced.

What does contractors all risks insurance cover?

In general our car policy will provide cover against:

  1. Loss or damage caused by acts of god that include:
  • Storm, tempest, hurricane, cyclone, typhoo, tidal wave
  • Flood and inundation
  • Landslide, rockslide, subsidence, earthquake
  • Lightning
  1. Loss or damage resulting from:
  • The use of faulty or unsuitable materials
  • Bad workmanship
  • Faulty design for which either the principal or the contractor or an independent architect or consulting engineer is responsible. However the cost of rectifying defects in material, design or workmanships ,that is, the cost of replacing parts found to be defective are not covered by this insurance policy
  1. Loss or damage to material, construction plant, equipment and or machinery
  1. Loss of damage caused by burglary ,theft or sabotage

The indicative premium:

While providing you a quote the premiums may be a reflection of the following indicative rates per category of works as stated in the contracts:

  • Buildings: 0.25%
  • Roads:-0.3%
  • Dams/pipelines:- 0.4%
  • Others:- 0.25%