Contractor’s All Risk Insurance

  • What is Contractors' All Risks Insurance?

Contractors’ All Risks is an all-risk policy with specific exclusions that provides coverage for damage to property and / or third-party property and bodily injury claims. It can be availed by the Principal or Contractor or both.

Important facts related to the Construction industry

  • The construction industry has a high accident frequency rate.  

  • In India, accidents that occur in workplaces are widely under-reported.

  • What is covered in Contractors' All Risks Insurance?

When you buy Digit’s Contractors’ All Risks Insurance, it offers the following coverages

Material Damage

In case of any damage of property during the policy period due to any reason other than those specifically excluded will be covered up to the specified amount under the policy. The insured will be reimbursed the cost incurred for clearance and removal of debris.

Third-party liability

Digit's policy will indemnify you against any legal liability for loss of property of other persons or for fatal or non-fatal injury to any person other than your own employees

Compensation

The policy will also compensate you all costs and expenses of litigation recovered by any claimant or those incurred by you with written consent from us.

Comprehensive cover

The policy offers projects comprehensive cover subject to printed exclusions in the policy. This policy is normally given to projects where value of civil construction works is more than 50% of total project value.

Add-on covers

You can get additional coverage for expenses not provided in the policy by opting for add-on covers.

Material Damage

In case of any damage of property during the policy period due to any reason other than those specifically excluded will be covered up to the specified amount under the policy. The insured will be reimbursed the cost incurred for clearance and removal of debris.

Third-party liability

Digit's policy will indemnify you against any legal liability for loss of property of other persons or for fatal or non-fatal injury to any person other than your own employees

Compensation

The policy will also compensate you all costs and expenses of litigation recovered by any claimant or those incurred by you with written consent from us.

Comprehensive cover

The policy offers projects comprehensive cover subject to printed exclusions in the policy. This policy is normally given to projects where value of civil construction works is more than 50% of total project value.

Add-on covers

You can get additional coverage for expenses not provided in the policy by opting for add-on covers.
  • Who needs Contractors' All Risks Insurance?

The insurance policy can be availed of by those involved in the construction business in any way.

Construction companies

Companies involved in the construction business can buy the policy to protect themselves financially during untoward circumstances.

Finance companies

The Contractors' All Risk policy can also be bought by companies that provide financial support to finance the entire project. It helps if some untoward incidents occur during the construction phase or afterwards.

Property owners

The property owner can buy the policy where the construction is happening as they are the ones who have given the task of completing the building to the contractor.

Contractors and subcontractors

With contractors and subcontractors employing workers to perform specific tasks concerning the completion of construction on time can also buy the policy.

Construction companies

Companies involved in the construction business can buy the policy to protect themselves financially during untoward circumstances.

Finance companies

The Contractors' All Risk policy can also be bought by companies that provide financial support to finance the entire project. It helps if some untoward incidents occur during the construction phase or afterwards.

Property owners

The property owner can buy the policy where the construction is happening as they are the ones who have given the task of completing the building to the contractor.

Contractors and subcontractors

With contractors and subcontractors employing workers to perform specific tasks concerning the completion of construction on time can also buy the policy.
  • Why do you need to buy the Contractors' All Risks Insurance policy?

The policy is necessary because:

  • It comes in handy when there is damage to construction projects.
  • The project is protected from the date of arrival of first consignment at project site and continues till completion and handing over of project and in no case beyond the expiry date as highlighted in policy. 
  • FAQs

Insurance companies consider various factors like location, value, scope, and duration of the construction when calculating the risk associated with the project. The companies decide the premium of contractors’ all-risk insurance policy based on the risk.

Yes, there is a time limit for submitting claim documents under the contractors’ all-risk policy.

‘All risks’ refers to the cover under the contract works section of the policy. In insurance, it means that the all-risks policy will cover any loss or damage of property or materials not falling under specified exclusions.

Under a contractors’ all risk insurance policy,  you can avail add-on coverage for cross- and third-party liability.

FAQs about Contractors All Risks Insurance in India

1.How is risk calculated by the insurance companies providing Contractors’ All Risks Insurance policy?

Insurance companies consider various factors like location, value, scope, and duration of the construction when calculating the risk associated with the project. The companies decide the premium of contractors’ all-risk insurance policy based on the risk.

2.Is there a specific time limit for submitting claim documents to the insurance provider?

Yes, there is a time limit for submitting claim documents under the contractors’ all-risk policy.

3.What does ‘all risks’ mean in insurance?

‘All risks’ refers to the cover under the contract works section of the policy. In insurance, it means that the all-risks policy will cover any loss or damage of property or materials not falling under specified exclusions.

4.Can I get add-on coverage for cross- and third-party liability under a Contractors’ All Risk insurance policy?

Under a contractors’ all risk insurance policy,  you can avail add-on coverage for cross- and third-party liability.