How is risk evaluated in a contractor’s risk insurance plan?

Risk in a contractor’s risk insurance plan is calculated on the basis of the nature of the work and exposure to natural perils.

Does the contractor's all risk insurance plan cover theft?

Yes, a contractor's all risk insurance plan covers loss or damage due to theft under the policy.

Who can buy a contractor’s all risk insurance policy?

Following individuals should buy the contractor’s all risk policy: Principal or owner Contractor Sub-contractor

What is the policy tenure of the contractor’s all risk insurance?

The minimum policy tenure for a contractor’s all risk insurance plan is 3 months, and the maximum is 84 months.

What are the exclusions of the contractor all risk insurance plan?

Following are the types of damages that are not covered under the contractor's all risk insurance plan: War or nuclear risk Contractual liabilities Normal wear and tear Loss due to improper design Defective material or poor workmanship A willful act or negligence of the policyholder Partial or total cessation of work

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Contractor’s All Risk (CAR) Insurance

The contractor’s All Risk Insurance Plan provides financial protection against loss or damage due to civil engineering projects. This protection plan is ideal for civil engineers, contractors, subcontractors, and others involved in the construction of projects. The plan covers the physical loss of construction material, property, plants, and equipment. Keep reading to delve into the details!

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What is Contractor’s All Risk (CAR) Insurance?

The contractor’s all risk insurance plan provides protection against loss or damage incurred due to construction work, plant and machinery, and equipment. Additionally, the plan provides coverage for accidental bodily injuries that happen to a third party during the execution of the project.

To put it simply, civil engineers involved in the construction work of the project get financial support from the contractor’s all risk insurance plan. Aside from civil engineers, manufacturers, suppliers, contractors, and subcontractors can also purchase a contractor’s all risk policy. You can buy the insurance plan for the entire project tenure, i.e., from the arrival of construction materials to the completion of the project. The civil project can be the construction of buildings, roads, dams, bridges on land, flyovers, tank construction, and others.

The individuals involved in the construction projects must buy the contractor’s all risk insurance plan to reduce the material risk and third-party bodily damages.

Benefits of Contractor’s All Risk (CAR) Insurance

Listed below are some of the benefits of the contractor’s all risk insurance coverage:

Material Benefit: Loss of material during construction is common. Therefore, the contractor’s all risk insurance plan covers a loss that happens to the involved parties due to construction work. The plan covers losses up to a specific sum assured mentioned in the policy document.
Third-party Liabilities: Accidental damages are anticipated in construction projects. Henceforth, the contractor’s all risk policy covers legal liabilities due to accidental damage, loss, or injury that happens to a third party. Additionally, third-party property loss or damage is also covered under the policy.
Add-on Cover: One of the major advantages of purchasing a contractor’s all risk insurance plan is that it provides enhanced coverage. The policyholders can buy various add-ons with their base insurance plan while renewing the policy. You may have to pay an extra premium to include add-ons in your base plan.
Lifetime Renewability: Contractor’s all risk insurance policy comes with a lifetime renewability option. This means you can renew your same insurance policy without any age limit or other restrictions for life.

Frequently Asked Question

1
How is risk evaluated in a contractor’s risk insurance plan?
Risk in a contractor’s risk insurance plan is calculated on the basis of the nature of the work and exposure to natural perils.
2
Does the contractor's all risk insurance plan cover theft?
Yes, a contractor's all risk insurance plan covers loss or damage due to theft under the policy.
3
Who can buy a contractor’s all risk insurance policy?
Following individuals should buy the contractor’s all risk policy:
- Principal or owner
- Contractor
- Sub-contractor
4
What is the policy tenure of the contractor’s all risk insurance?
The minimum policy tenure for a contractor’s all risk insurance plan is 3 months, and the maximum is 84 months.
5
What are the exclusions of the contractor all risk insurance plan?
Following are the types of damages that are not covered under the contractor's all risk insurance plan:
- War or nuclear risk
- Contractual liabilities
- Normal wear and tear
- Loss due to improper design
- Defective material or poor workmanship
- A willful act or negligence of the policyholder
- Partial or total cessation of work