Contractors All Risk Insurance for Commercial Buildings

Contractors All Risk Insurance for Commercial Buildings Inclusions

• Construction all risk policy covers the commercial building against physical damage or loss caused by perils. This includes fire, explosion, storm, flood, theft, vandalism, and accidental damage during the construction period.
• It includes coverage for legal liabilities arising from bodily injury or property damage caused to third parties due to construction activities on the site.
• Construction all risk policy covers the cost of repairing or replacing construction materials, equipment, and machinery on the site that may be damaged or stolen during construction.
• It provides coverage for construction plant and machinery used on the site. This includes excavators, cranes, bulldozers, and other equipment against accidental damage, theft, or breakdown.
• Construction all risk policy covers the cost of removing debris from the construction site in case of damage or destruction of the building or materials.
• It may include coverage for additional expenses and loss of revenue incurred due to a delay in the completion of the construction project caused by an insured event.
• CAR insurance covers the professional fees of architects, engineers, surveyors, and consultants associated with the project in case of damage or loss.
• It may extend coverage to the materials and equipment in transit to or from the construction site.
• Construction all risk policy may include coverage for materials and equipment stored off-site but intended for use in the construction project.
• It covers the value of the construction works. This includes labour, materials, and equipment, against damage or loss during the construction phase.

Contractors All Risk Insurance for Commercial Buildings Exclusions

• CAR insurance may not cover consequential losses or damages that arise as a result of a covered event, such as loss of income or business interruption.
• CAR insurance generally excludes coverage for damage to existing structures or property not directly related to the construction project. The policy usually focuses on new construction or renovation work.
• Intentional damage or destruction caused by the contractor or any third party involved in the project is typically excluded from coverage.
• Damages caused by war, acts of terrorism, or political unrest are expected to be excluded from CAR insurance policies. These risks are usually covered by separate specialized insurance policies.
• Some natural disasters such as earthquakes, floods, or hurricanes are excluded or subject to specific limitations in CAR insurance policies. Again, separate insurance policies may be necessary to cover these risks.
• If the damage or loss occurs due to negligence on the part of the insured contractor, it may not be covered by CAR insurance. Negligence includes failure to adhere to safety regulations or industry standards.
• CAR insurance typically excludes coverage for loss, damage, or destruction of documents, plans, or drawings associated with the construction project.
• Any loss of profits or financial losses suffered by the contractor due to delays or disruptions in the construction process may be excluded from CAR insurance coverage.

Contractors All Risk Insurance for Commercial Buildings Add-ons

• Extended Cover
• Third-Party Liability
• Professional Fees
• Removal of Debris
• Construction Plant and Equipment
• Contract Works
• Advanced Loss of Profits (ALOP)
• Maintenance Period
• Airside Liability
• Professional Indemnity Insurance

Claiming process of Contractors All Risk Insurance for Commercial Buildings

1. Report the incident
2. Document the damages
3. Notify relevant parties
4. Contact the insurance agent or claims department
5. Complete the claim forms
6. Submit supporting documents
7. Assessing the claim
8. Claims evaluation and settlement
9. Negotiation and settlement agreement
10. Claim payment

FAQs