Contractor's All-Risk Insurance Policy

A Contractor’s All Risk insurance policy provides comprehensive coverage for construction projects. It provides financial protection against property damage from fire, theft, or natural disasters, liability for third-party injuries and protection for construction equipment. It also compensates for project completion delays due to material shortages, labour strikes, adverse weather conditions, or unforeseen hindrances. In short, CAR policies offer essential financial protection for contractors, builders, and construction companies throughout the construction process.

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Why Should You Purchase Contractor All Risk Insurance Policy?

Considering the unique risks inherent in construction projects, investing in a Contractors All Risk Insurance Policy offers invaluable protection and peace of mind. Here's why:

  1. Project-Specific Coverage: CAR policies offer coverage tailored to the risks specific to construction projects, ensuring that contractors have protection against common perils encountered during construction activities.
  2. Comprehensive Protection: The Contractor's All Risk policy provides extensive coverage that spans from the storage phase through construction, persisting until the project reaches completion and is transferred to the principal.
  3. Contractual Obligations: Contractor All Risk policy (CAR Insurance) helps contractors meet contractual requirements stipulated by project owners or contracts, demonstrating their commitment to risk management and compliance with project specifications.
  4. Risk Transfer: By transferring the financial risk to the insurance provider, contractors can safeguard their assets and mitigate potential losses resulting from unforeseen events or disruptions during construction.
  5. Continuity of Operations: In the event of property damage, equipment breakdowns, or delays, CAR Insurance ensures the smooth continuation of construction operations by providing financial support for necessary repairs, replacements, or compensation.
  6. Professional Reputation: Having CAR Insurance enhances the professional reputation and credibility of contractors and construction firms, instilling confidence in clients, partners, and stakeholders regarding their ability to manage risks effectively.

Who Should Purchase Contractors All Risk Insurance Policy?

The Contractors All Risk Insurance policy (CAR Insurance) is essential for various stakeholders involved in construction projects, including:

  • Contractors
  • Builders
  • Construction Companies
  • Project Owners
  • Companies financing the project
  • Firms commissioned to carry out the work, including subcontractors

What is Covered Under Contractors All Risk Insurance Policy?

The Contractors All Risk insurance policy covers the following:

  1. Material Damage:

    • Loss, harm, or devastation of property (excluding packing materials) specified in the Policy Schedule.
    • Losses from any cause not explicitly excluded.
  2. Third-Party Liability:

    • Legal liability for unintentional loss or damage to the property of others.
    • Legal liability for fatal or non-fatal injury to individuals other than the insured, their employees, employees of the site owner, employees of other associated firms, or members of the insured's family.
  3. Fire Group of Perils

    • Fire, bush fire, implosion, explosion impact damage
  4. Act of God Perils (Major Perils /AOG Perils in Construction All Risk Policy)

    • Earthquakes, volcanic eruptions, storms, tempests, floods, inundations, landslides, rockslides
  5. Social Perils (SRCC in Construction All Risk Insurance)

    • Riots, strikes, malicious damages, burglary and theft

What is Not Covered Under Contractors All Risk Insurance Policy?

The exclusions in Construction All Risk insurance are as follows:

  • Risks related to war and nuclear incidents
  • Partial or total work stoppage
  • Intentional acts or negligence by the insured party
  • Faulty materials or poor craftsmanship
  • Obligations outlined in contracts
  • Accidents involving vehicles licensed for general road use, waterborne vessels, or aircraft
  • Damage caused by normal wear and tear
  • Loss or damage due to design flaws
  • Penalties arising from contractual obligations
  • Exclusion of coverage for road-use vehicles

Add Ons Under Contractors All Risk Insurance Policy

Policyholders can enhance their coverage by purchasing add-ons offered by the insurer. The extensions in Construction All Risk insurance are as follows:

  • Damage to surrounding property caused by the contractor's work.
  • Construction equipment such as shuttering material and scaffolding.
  • Maintenance cover and maintenance visits.
  • Rectification of original defects or faults incurred during construction.
  • Damage or accidental loss during rectifications carried out in the maintenance period.
  • Disappearance or shortage (inventory losses).
  • Clearance or removal of debris.
  • Coverage against terrorism-related incidents.
  • Dilling work for water wells
  • Extension of maintenance period
  • Fire fighting
  • Marine offshore works

Contractors All Risk Insurance Policy: Claim Process

Follow the below steps to file a claim for the contractors all risk insurance policy:

  1. Notify Your Relationship Manager: Inform your dedicated relationship manager promptly about the incident to initiate the claim process effectively.
  2. Complete and Submit Claim Form: Fill out the provided claim form and submit it to your relationship manager to formally commence the claim procedure.
  3. Evaluation and Claim Registration: Your submitted information will be swiftly forwarded to the insurance company for thorough evaluation and registration of the claim, resulting in the issuance of a unique claim reference number.
  4. Appointment of Surveyor: Upon claim initiation, the insurer will appoint a competent surveyor to assess the situation and determine the extent of the damages.
  5. Documentation Submission: Upon survey initiation, the appointed surveyor will assist you in the required documentation process. Submit all necessary documents as instructed for efficient claim processing.
  6. Claim Approval and Funds Disbursement: Once the evaluation process is concluded and your claim is approved, the insurance company will promptly release the claim funds to you for timely resolution of the incident.

Please note: The insurer will carefully review the terms and conditions of your policy to determine coverage eligibility for the reported incident. Consequently, the decision to accept or reject the claim will be made solely by the insurer.

Why Should You Purchase Contractors All Risk Insurance via Policybazaar for Business?

  • Expert Consultation: Our team of business risk consultants provides personalized advice tailored to your unique needs and preferences.
  • 365-Days Claim Support: Accessible every day of the year, our team of claim specialists ensures smooth and efficient processing of your claims year-round.
  • Dedicated Relationship Manager: Upon signing up, you'll receive a dedicated relationship manager who offers continuous support and guidance to safeguard your business against potential risks.
  • Competitive Quotes: Utilizing our extensive network of insurer partnerships, we offer competitive quotes from top insurers, ensuring you receive the best prices in the market while maintaining service quality.
  • Instant Policy Copy: Enjoy the convenience of instant policy issuance by purchasing contractors all risk insurance directly through our website. With seamless integration with major insurers, you can obtain your policy copy within minutes.

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Policybazaar for Business - Contractor Risk Insurance - Customer Reviews
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Based on 28 reviews
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Based on 28 reviews
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3.8 February 22, 2023
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.
4.3 February 02, 2023
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.
3.8 January 13, 2023
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.
4.3 December 24, 2022
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.
4.3 December 04, 2022
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.
4 November 14, 2022
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."
4.3 October 25, 2022
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
3.8 October 05, 2022
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.
4.5 October 01, 2022
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.
4.5 September 30, 2022
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.

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