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Contractor’s All Risk Policy

All Risk Coverage for construction Projects

Contractor’s All Risk Policy
 
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What is Contractor’s All Risk Policy?

During the course of execution of project relating to construction of building and civil engineering works, certain unforeseen accidents could occur resulting in considerable financial loss to the contract works, construction / or the principals arising from damage to the contract works, construction of plant and machinery as well as Third Party Claims. The Contractors All Risks (CAR) Insurance has been designed to protect the interests of the Contractors /Principal against such losses.

Contractor’s All Risk Insurance
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Who needs it?

Although Contractors All Risk policy may be taken by the Principal or by the contractor, but usually, under the terms of the agreement between the contractor and the principal, it is obligatory on the part of the contractor to effect a CAR insurance in their joint names before the commencement of the project.

Why ICICI Lombard?

One of the leading General Insurance Company with following strengths:

1

One point contact for all requirements

2

Better understanding of risk, effective underwriting of portfolio and better risk management

3

Dedicated Risk engineers to cater construction sector clients.

4

Financial strength and supreme claims paying capacity

Why do you need it?

Contractors All Risk is a comprehensive insurance cover to the client for any contingency from the moment the material is unloaded at the site of the project and continues during storage, physical construction/erection and till the test run is over and during maintenance, if covered.

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What is covered by ICICI Lombard Contractor’s All Risk Policy?

Below are the detailed inclusions and exclusions of Contractor’s All Risk Policy

icon Location Risks: Fire, Lighting, Theft, Burglary & Housebreaking
icon Testing and Commissioning Risks*: Failure of Safety Devices, Leakage of Electricity, Insulation failure, Short circuit, explosion
icon Act of God: Storm, Tempest, Hurricane, Flood, Inundation, Subsidence, Landslide, Rockslide, earthquake.
icon Handling Risks: Impact from falling objects, Collision, Failure of Cranes or Tackles etc.
icon Risk of Human Element: Carelessness, Negligence, Faults in Erection/Construction, Strike & Riot, Malicious damage, Terrorism
icon Testing Perils: Maximum value at risk. A specific request to be made to UW
icon War & Allied Perils
icon Wilful act or wilful negligence of Insured/ his representatives.
icon Excess in respect of each claim as stated in the policy
icon Normal wear and tear, gradual deterioration, lack of use, obsolescence, rust, etc.
icon Any damages/ penalties on account of the Insured of the terms of delivery/ completion under his contract of construction.
icon Nuclear & Allied Perils.
icon Cessation of work
icon Losses discovered only at the time of taking an inventory
icon Loss/ damage due to faulty design, defective material or casting other than faults in erection.
icon Consequential loss/ liability of any kind.

The insurance cover is subject a few exclusion listed in the policy which are applied internationally and are common to the insurance industry.

ICICI Lombard Contractor’s All Risk Articles

How to secure your construction projects with contractors all risk insurance?

Contractors All Risk (CAR) insurance provides essential protection for construction and infrastructure projects against material theft and accidental damage. Contractors, builders, and developers face risks such as theft, weather-related damage, and machinery accidents. CAR insurance offers comprehensive coverage, ensuring projects stay on track financially despite unforeseen incidents, safeguarding investments and providing peace of mind.

10 Feb 2025
Benefits of Contractors' All-Risk Insurance Policy

According to the Construction Industry Development Council, around 32 million people are involved in the booming and thriving construction sector in India, which is worth Rs 2,48,000 crores. However, managing projects comes with inherent risks, from third-party liability lawsuits to unforeseen events and material damage due to natural disasters. These events are stressful, delay projects, and cost a significant part of your budget.

18 Jul, 2024
What is Contractor’s All Risk Insurance?

During the tenure of execution of civil engineering projects, including the construction of residential and non-residential properties, like bridges, hospitals, schools, etc. unforeseen accidents may arise, which could result in disastrous financial loss to the construction company and other parties involved. Apart from the property damage due to inferior construction or materials, an injury may be caused to a third party, resulting in claims or lawsuits.

20 April, 2022

Get answers to common questions about Contractor’s All Risk Policy

It’s an All Risk Policy.The Policy indemnifies the Insured in the event of unforeseen and sudden physical loss or physical damage to the Property Insured arising:

  • during the period of Insurance
  • whilst at the Project Site (or in storage)

Contractor’s All Risk Policy is basically for insuring projects which have more than 50% civil works

To insure all types of civil works ranging from small buildings to massive dams/structures are susceptible to damage by fire, water, storm, impact, landslide and the like and exposure to such damage commences right from the first delivery of materials at the contract site and site and continues during the entire period of contract

  • Principal Or Owner
  • Contractor
  • Sub-contractor

After a fire, flood, burglary, earthquake or other such event, there is obvious destruction, loss or damage to buildings, plant and stock. This physical loss or damage is known as Material Damage

Risk is evaluated on the basis of nature of work and exposure of natural hazard to the risk location

You can visit our website sme.icicilombard.com

  • Accidental loss or damage to property belonging to third parties (including consequential financial loss
  • Accidental bodily injury / illness to third parties

Theft is covered under the policy

You can buy, Contractors Plant & Machinery for the plants and equipment involved in the construction

Marine Insurance for the transit of construction material

Workmen's Compensation for your workers

To insure all types of civil works ranging from small buildings to massive dams/ structures are susceptible to damage by fire, water, storm, impact, landslide and the like and exposure to such damage commences right from the first delivery of materials at the contract site and site and continues during the entire period of contract

  • Principal Or Owner
  • Contractor
  • Sub-contractor
  • Detailed RFQ
  • Principal, Contractor, Sub-contractor details
  • Estimated Cost of project- contract cost, Other than Project BOQ material, Taxes etc
  • Projects Start date, End date, and Bar chart
  • Details towards Testing for Erection All Risk projects
  • Equipment details like Imported equipment, second-hand details for EAR projects
  • Sum Insured breakup towards different scope of works
  • Risk location details, in case of multiple locations- names of all locations. (Latitude-longitude coordinates & Google maps required for road projects, transmission lines)
  • Complete/Detailed scope of works or contract copy
  • Wet works details and sum insured if involved

The policy has a maximum period of 84 months inclusive of Extended Maintenance Period.

This insurance may be terminated at the request of the Insured at any time, in which case, the Insurers will refund appropriate premium amount subject to the following conditions:

  • Claims experience under the policy as on date of cancellation should be less than 60% of reworked premium
  • The unexpired period is not less than 3 months or 25% of the policy period, whichever is less.
  • Testing period should not have commenced

Policy can be taken for a minimum period of 3 months

Damage/Accident can be notified through any one of the below touch points.

  • Web page www.icicilombard.com
  • Homepage / Web claim tracker
  • Call 24 X 7 call centre number 1800 2666

Documentation is not required for claim intimation. You have to submit only the policy number

Product Name: Contractors all risks insurance (Retail) UIN No. For Retail: IRDAN115RP0021V01200708 Product Code: 5004

Product Name: Contractors all risks insurance (Commercial) UIN No. For Commercial: IRDAN115CP0050V01201920 Product Code: 5004

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70% of SMEs in India face at least one business-related risk in the last three years*.
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*Source: Times of India

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You will be contacted by our Relationship manager shortly with a customised quotation. To connect further for any queries, you can write to businessinsurance@icicilombard.com or call us on 1800 2666.

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