The contractors all risk policy is designed to provide insurance to contractors and principals. The policy can be extended to third parties. The policy provides as 'all risk' coverage for civil engineering projects like buildings, bridges, tunnels, roadworks, railway and airway works and so on.
As the coverage is on 'all risk' basis, almost every risk is covered unless specifically excluded. The cover starts whenever materials are unloaded at the construction site or when the work commences, whichever is earlier. The cover ends when when the the project competes or when the policy ends, whichever is earlier. The important causes of losses indemnifiable are:
- Fire, explosion
- Flood, inundation and lightning
- Windstorm
- Earthquake, landslide and subsidence
- Theft and burglary
- Accidental damage
- Impact and collapse
- Negligence, malicious acts, human error and acts of terrorism
The sum insured is determined by the estimated value of the completed contract works which include cost of materials supplied by suppliers and even the principal, wages, construction costs, customs and freight duties,
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