Contractors All Risk Insurance(CAR)
Contractors’ all risks (CAR) insurance is a non-standard insurance policy that provides coverage for property damage and third-party injury or damage claims, the two primary types of risks on construction projects. Damage to property can include improper construction of structures, the damage that happens during a renovation, and damage to temporary work erected on-site.
Need for Contractor’s All Risk Insurance
Third parties including subcontractors may also become injured while working at the construction site. CAR insurance not only covers those associated risks but also bridges these two types of risks into a common policy designed to cover the gap between exclusions that would otherwise exist if using separate policies.
CAR insurance coverage is common for such construction projects as buildings, water tanks, sewage treatment plans, flyovers, and airports.
- Section I – It provides coverage for the property lost, damaged, or destroyed by any cause, other than those specifically excluded in the Policy, necessitating replacement or repair. The Policy will pay or make good all such loss or damage up to an amount not exceeding the sum specified in respect of each of the items and not exceeding in the whole the Total Sum Insured.
- Section II – provides coverage towards: a)legal liability for accidental loss or damage caused to property of other persons b) legal liability for fatal or non-fatal injury to any persons other than the Insured’s own employees or workmen or employees of the owner of the works or premises due to construction of any property.
- The Policy also provides for payment of – a) All cost and or expenses of litigation recovered by any claimant from the Insured. b) All cost or expenses incurred by Insured with the written consent of the company.
- On payment of additional premium, the following coverages may be selected
- Provision for escalation
- Clearance and Removal of Debris
- Additional Rate for Express Freight (Air Freight Excluded) Holiday and Overtime Rates of the Wages
- Additional Rate for Air Freight Only
- Additional Custom Duty
- Construction Machinery Plants and Equipment
- Loss Due to Breakage of Glass
- Storage Rate at Fabricators Premises/Workshop
- Maintenance Visits and Extended Maintenance Cover
What’s not covered?
- War, Invasion, Act of foreign enemy, hostilities or War like operations (whether war be declared or not) Civil War, rebellion, revolution, insurrection, mutiny, Civil commotion, Military or usurped power, martial law, conspiracy, confiscation, commandeering a group of malicious persons or persons acting on behalf of or in connection with any political organisation, requisition or destruction or damage by order of any Government de jure or defacto or by any Public, Municipal or Local Authority;
- Nuclear reaction, Nuclear radiation, or Radioactive contamination
- Wilful act or wilful negligence of the Insured or of his responsible representative.
- Cessation of work whether total or partial
- Inventory losses
- Manufacturing / design defects
- Consequential loss
Civil engineering projects like buildings, bridges, dams, roads, etc. require huge capital investments and involve high risk of loss or damage. There may be accidents, natural disasters or unexpected happenings which can cause physical damage to the project, subsequently putting the responsibility for loss or damage on the contractor. This is where Emedlife’s expertise comes into play with our Contractors All Risks Insurance comes to your aid.
Talk to us today for all your Contractor’s All Risk Insurance needs at an affordable price and for reliable claims management.
For registration of claims and to learn more about our claims process please Contact our dedicated claims team for advice on an incident/claim.
D&O Policy protect company director or officer from legal liability arising out of actual or alleged wrongful acts in managing a company.
- The policy covers a wide range of litigation that could arise from customers, vendors, shareholders, employees.
- In addition to defence cost, it provides cover for :
- Investigation Cost
- Entity Protection against Employment Practice Liability claims
- Outside Entity Directorship cover,etc.