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Stormy Beach

Contractors All Risk Policy (C.A.R.)

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.

In the forest
Construction Project

All Risks (with certain exceptions) involved during storage, assembly, erection/Construction against:-

  •     fire, lightning, explosion/implosion, aircraft damage,

  •     flood, storm, landslide,

  •     theft, burglary, RSMD,

  •     Negligence, lack of skill, collision, impact, dropping,etc.

By paying additional premium policy can be extended to cover additional perils/expenses which are mentioned below:

  •     Earthquake

  •     Terrorism

  •     Clearance and removal of debris

  •     Third party liability cover

  •     Surrounding property of the insured

  •     Escalation provision

  •     Express freight, holiday and overtime rates of the wages

  •     Air freight

  •     Additional custom duty

  •     Construction machinery plants and equipment

  •     Maintenance visits cover and extended maintenance cover

Why do you need Contractor’s All Risk Policy

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.
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.

  • War and nuclear perils

  • Normal wear and tear, gradual deterioration etc

  • Damage due to faulty design, defective materials, bad workmanship, etc.

  • Consequential loss like loss of revenue, penalty for delay etc.

  • Inventory losses • Wilful negligence,

  • loss of or damage to vehicles licensed for general road use or water borne vessels

  • loss of or damage to files, drawings, accounts, bills, currency, stamps, deeds, evidence of debt, notes, securities cheques, packing materials such as cases, boxes, crates.

This policy offers comprehensive cover by covering risks which may arise during construction period. It gives financial protection to the civil engineering contracts in the event of any accident.

The Contractor’s All Risk policy is for civil constructions works like residential or commercial buildings, Factory sheds, dams, Roads & bridges, Canals, irrigation projects, etc
The policy also covers legal liability to third parties arising as a result of the project activity during the construction period
The CAR policy can be availed for the entire project period starting from arrival of material at site and till project completion.


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