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:
- Legal liability for accidental loss or damage caused to property of other persons
- 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.
