Contractors insurance FAQS, Civil and construction projects Insurance

Contractors All Risk Frequently Asked Questions (FAQ’s)

What are the perils covered under a Construction All Risk (CAR) policy?

This is an ‘All Risk’ policy covering sudden and unforeseen physical damage to civil projects under construction insured by any cause or peril not specifically excluded under the policy. Important Perils which will be covered include:

Fire and Allied Perils
Flood, storm, tempest & cyclone
Earthquake, fire & shock
Collapse
Water Damage for Wet Risks
Faults in erection/ construction
Human errors, negligence

Who normally purchases a CAR policy?

All parties involved in any way in the construction may be insured:

Contractors
Firms commissioned to carry out the work, including subcontractors
The purchaser or owner
Parties financing the project

What are the Exclusions under the CAR policy?

War and Nuclear risks
Willful Act or Willful Negligence of the Insured
Partial/total cessation of Work
Defective material or bad workmanship
Normal wear and tear
Normal Maintenance or Making Good
Loss or damage due to faulty design
Disappearance or shortage (inventory losses)
Contractual liabilities
Consequential losses

What are the Add on coverages under a CAR policy?

Express freight, Holiday and Overtime
Air freight
Breakage of glass
Additional customs duty
Removal of debris
Earthquake
Escalation
Storage at Fabricator’s Premises/ Workshop
Construction, plant & machinery
Cross liability
Third party liability
Maintenance visits cover and Extended Maintenance
Owner’s surrounding property
Terrorism

Contractors All Risk Frequently Asked Questions (FAQ’s)

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