Understanding Contractors All Risk Insurance for Water Supply Installation

Contractors All Risk Insurance for Water Supply Installation: Inclusions

Contractors all risk insurance for water supply installation covers the following perils-

Loss or damage caused to the insured project site due to lightning and fire

Loss or damage caused to the insured project site during natural calamities such as storms, floods, tempests, and inundations

Loss or damage caused to the insured project site due to landslide and rockslide

Loss or damage caused to the insured project site due to man-made hazards, including riots and strikes

Loss or damage caused to the insured project site because of third-party vehicle collapse and collision

Any loss or damage due to theft or burglary

Contractors All Risk Insurance for Water Supply Installation: Exclusions

Contractors all risk insurance for water supply installation does not cover the following perils-

If the damage is due to defective material or faulty design

If there is inventory loss

If the damage is due to regular wear & tear of the machinery and plant

In case of loss due to termination of the project (both partial or total)

In case of loss due to willful negligence or any willful act by the insured party

If the loss or damage arises due to war or any other related perils

Any kind of consequential losses arising in the insured project site

Contractors All Risk Insurance for Water Supply Installation: Add-ons

The insurer offers several add-on covers with contractors all risk insurance policy to enhance the existing coverage-

Coverage for contractor's plant and machinery

Coverage for surrounding property damage

Coverage for damages due to earthquakes

Coverage for terrorism

Coverage for third-party liabilities

Coverage for a maintenance visit or extended maintenance

Coverage for removal of debris

FAQs

Q1. What can be the project period for water supply installation covered under contractors all risk insurance?

Ans: The project period for water supply installation might vary from 1 month to 24 months.
Q2. Who needs contractors all risk insurance?
Ans: Here is a list of parties who can buy contractors all risk insurance-
- Principal or project owners
- Contractors
- Sub-contractors
Q3. Is theft covered under contractors all risk insurance?

Ans: Yes, theft is covered under contractors all risk insurance.
Q4. What is third-party liability under the contractors all risk insurance?
Ans: Third-party liability under the contractors all risk insurance refers to-
- Accidental damage or loss to third-party in the insured project site
- Accidental bodily injuries and illness to a third party in an insured project site.