Contractor’s All-Risk Insurance Policy

Contractors all risk insurance policy provides comprehensive coverage against loss or damage caused to the construction plant and equipment, machinery as well as third-party claims in respect of the bodily injury and property damage caused during the execution of civil engineering projects. This makes it a beneficial insurance option for architects, engineers and financiers involved in construction projects. By reducing the overall expenses of construction, this policy can help to ensure that projects are completed on time and within budget.

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Features & Benefits of Contractor's All Risk Policy

Here are some of the features and benefits of the Contractor’s all risk insurance:

  • Contractors all risk offers comprehensive insurance coverage for civil engineering projects where the value of civil works is more than 50% of the total contract value.
  • Construction all risk policy operates during storage, erection/construction till completion and the handing over of the works to the principal.
  • Material Damage: Under this loss, damage, or destruction of property incurred due to any cause other than those excluded in the policy is covered. Most of the policies pay for the losses or damage up to a certain amount that does not exceed the sum mentioned against every item and does not exceed the total sum insured.
  • Third-Party Liability: Under this, the coverage towards:
    • Legal liability related to accidental damage or loss caused to the property of a third person.
    • Legal liability for non-fatal and fatal injuries caused to a third person (other than the own employees or workers of the insured) due to the construction of the property.
    • Perils that are covered under the contractor all-risk policy online are:
      • Fire and allied perils
      • Collapse
      • Earthquake, shock, and fire
      • Faults in construction
      • Storms, floods, cyclones, and tempests.
      • Negligence and human errors
      • Water damage

Contractor's All Risk Insurance: Inclusions

Contractor's All Risk insurance covers the following:

Section I- Material Damage:

Contractors all risk cover 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 for all such loss or damage up to an amount not exceeding the sum specified in respect of each of the items and not exceeding the total sum insured.

Section II- Third Party Liability:

Here is the contractor all risk policy coverage against third-party liabilities:

  1. Legal liability for accidental loss or damage caused to property of other persons
  2. 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 the construction of any property.

Perils covered under Contractor's All Risk insurance include:

  • Fire and Allied Perils
  • Earthquake, fire and shock
  • Floods, storms, tempests and cyclones
  • Collapse
  • Faults in erection/construction
  • Water Damage for Wet Risks
  • Human errors, negligence

Contractor’s All Risk Insurance: Exclusions

The contractor’s all risk insurance policy does not provide coverage for the following:

  • War and nuclear risks
  • Partial/total cessation of work
  • A willful act or willful negligence of the insured
  • Defective material or bad workmanship
  • Contractual liabilities
  • Normal maintenance or making good
  • Normal wear and tear
  • Loss or damage due to faulty design

Add-On Coverage:

Policyholders have the option to enhance their coverage by purchasing the following add-ons offered by the insurer.

A policyholder can extend his/her policy to get the following cover as an add-on:

  • Damage incurred to the surrounding property of the contractor’s work.
  • Construction equipment such as shuttering material and scaffolding.
  • Maintenance cover and maintenance visit.
  • Rectification of the original defect or faults incurred during the construction.Damage or accidental loss while carrying out various rectifications during the maintenance period.
  • Disappearance or shortage (inventory losses)

Why Contractors All Risk Policy Required?

Contractors all risk insurance policy is specially designed for protecting civil contractors against the destruction or damage of different construction projects like offices, hospitals, channels, tunnels, etc. Any accidental damage to these projects or the plants of the contractor or machinery is covered in this kind of policy. Some of the benefits of a contractor's all risk insurance policy are:

  • Most of the plans under this insurance type cover projects of civil engineering where the civil work is more than 50% of the total value of the contract.
  • The plan starts covering the project from the time of storage, construction, and covers till the project gets completed and is handed over to the principal.

Who Can Purchase Contractor’s All Risk Insurance Policy?

Contractor's All Risk insurance can be availed by those who are involved in any way in the construction business, such as:

  • Contractors
  • Purchaser or owner
  • Companies financing the project
  • Firms commissioned to carry out the work, including subcontractors

You can also cover all participants under a single insurance contract for the whole project to avoid gaps in coverage.

Contractor’s All Risk Premium Calculation

The buyer can calculate the premium amount using the contractor’s all risk insurance calculator. The buyer can visit the Policybazaar Insurance Brokers Private Limited’s website, fill in the required details such as the sum insured amount, add-ons, etc. and the contractor all risk insurance calculator will provide the buyer an estimate of the premium amount that has to be paid annually to stay covered under the insurance plan.

How to Raise a Claim Under Contractor’s All Risk Insurance Policy?

Follow the below steps to file a claim for the contractor's all risk policy:

  • Inform the insurance company immediately regarding the damage/loss by phone.
  • After intimating via phone, the insurer must be notified in writing as well regarding the damage or event of a loss. The written notification must include the extent of damage caused to the property.
  • If the loss or damage is caused due to burglary or theft, then the insured should inform the police immediately.
  • The company sends its surveyor for the survey. Therefore, the insured should keep the damaged property/parts preserved for the same.
  • The insured now must submit the duly filled claim form with the following documents to the insurance company:
    • The written statement of the claim has the details of the loss or damage to the property.
    • For machinery claims technical damage report.
    • Delivery receipts or purchase invoices.
    • A police report, if it is lodged.
    • Repair or replacement estimate.

How To Renew Contractor’s All Risk Insurance Policy?

Make sure to follow the steps given below to renew your Contractor’s All Risk insurance policy:

  • Step 1: Visit the Official website of the Insurance company.
  • Step 2: To access your account, enter your policy number.
  • Step 3: Once you get into your account, review the policy coverage and add-ons.
  • Step 4: Add or remove any add-on as per your requirement.
  • Step 5: If you add an add-on the insurance premium will increase and if you remove an add-on the insurance premium will decrease.
  • Step 6: Once you are done with addition and removal, you can make the payment using a debit or credit card, UPI or net banking as per your convenience.
  • Step 7: Once the payment is made, the insurer will send the soft copy of the updated contractor all risk policy online to your registered email ID and a hard copy to your home address in a few days.

Contractor's All Risk Policy- FAQs

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Policybazaar for Business - Contractor Risk Insurance - Customer Reviews
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4.2/5
Based on 28 reviews
4.2
out of 5
Based on 28 reviews
1 users
21 users
6 users
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3.8 February 22, 2023
Aditya
Compensate For Damages
I recently purchased Contractors All Risk Insurance from PolicyBazaar website and had a great experience with them. It was necessary to purchase this Insurance as I understand the risks and uncertainties of the job. However, with this policy, I found myself protected against a wide range of unforeseen events such as property damage, third-party liability and even employee injuries. Thanks to Policybazaar.
Allahabad
4.3 February 02, 2023
Umang
Quick Renewal
I recently purchased Contractors All Risk Insurance from PolicyBazaar and I am delighted to share my positive experience with this valuable policy. From the moment I initiated the process until the policy was in effect, PolicyBazaar demonstrated outstanding professionalism, reliability, and a genuine commitment to customer satisfaction. Thanks PB.
Jamshedpur
3.8 January 13, 2023
Astha
Time Saving Process
Throughout the process, I was consistently impressed by PolicyBazaar's exceptional customer service. Their representatives were friendly, knowledgeable, and always ready to assist me with any questions or concerns I had. They patiently explained the policy terms and conditions, clarifying even the most intricate details, which allowed me to make well-informed decisions regarding my coverage. I truly felt valued as a customer, and their dedication to ensuring my satisfaction was evident in every interaction.
Vadodara
4.3 December 24, 2022
Usha
Suitable Purchase
Recently we got a project to work on a site. I made sure that i get the contruction all risk insurance policy. A friend of mine suggested to purchase it from PolicyBazaar website so i went on their website and made the purchase without any hassle. It was a suitable purchase as it provided compensation for material damage and many more Thanks to PolicyBazaar.
Ludhiana
4.3 December 04, 2022
Simran
Provides Security To Material Damage
I recently purchased Contractors All Risk Insurance from PolicyBazaar which provides me peace of mind, knowing that projects are protected against unforeseen events. This allows me to focus on my work without constantly worrying about potential risks and liabilities. Thanks Policybazaar.
Kochi
4 November 14, 2022
Lovejeet
Knowledeable Staff
The staff at PolicyBazaar were knowledgeable and helped me choose the right policy that fit my specific needs. I highly recommend Contractors All Risk Insurance through Policybazaar for anyone involved in construction projects."
Coimbatore
4.3 October 25, 2022
Rahil
Peace Of Mind
I recently purchased Contractors All Risk Insurance through PolicyBazaar and I am so happy with the services I received during the buying process. Also, the policy provided me with peace of mind during my construction project, as it covered unforeseen damages to the project site, materials and equipment. The claims process was straightforward and hassle-free and the insurance company promptly reimbursed me for the damages I incurred. Thanks Policybazaar
Lucknow
3.8 October 05, 2022
Anuj
User Friendly Website
As a contractor, I was looking to buy Contractor all risk from the PolicyBazaar website online. So I went on their website and checked several details. It was well-maintained and described all the benefits in detail. I contacted their customer support and decided to buy from them. The website is really user-friendly and helpful. Highly Recommend. Thanks, PolicyBazaar.
Kolkata
4.5 October 01, 2022
Subh
Well Maintained Website
I was looking to buy contractor all-risk insurance that protects property from any damages and landed on the policybazaar website. It is well written & maintained website and provided all the necessary information. The add-ons are also affordable and provide extra protection.
Delhi
4.5 September 30, 2022
Neeraj
All In One Policy
Unique perks, low premium, great customer support, and a claim settlement process are a few things that we have experienced with policybazaar. We bought a contractor all-risk policy last year and raised a claim for an incident. The process was simple and the claim was reimbursed in a few days.
Jaipur

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