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What is Construction All Risk Insurance?

A construction site is vulnerable to various kinds of damages and losses. Any loss can accumulate from the pilferage, theft, legal claims and many others. As a contractor, it turns out to be an essential requirement for you to meet the terms with the deadlines, however, any risks can arise to interrupt the smooth functioning of the total construction process. This is where construction all risk insurance policy which is also known as contractors all risk insurance policy comes into a major role play.
Construction all risk insurance policy provides comprehensive protection by covering risks which may arise on the process of construction. It comprises of physical damage or loss that may come about to the property, machinery and plant, provisional work erected on-site along with the third-party legal liability related to the work going on the site.
Now, that means, construction all risk insurance policy coverage works for the security to the construction site for the purpose of the contract in conjunction with temporary work erected or constructed on-site. Contractors all risk insurance policy also provides extensive protection against damages or losses bring upon to the property from fire under a fire insurance policy which is also covered under construction all risk insurance policy in India.


Construction All Risk Insurance Policy Coverage

The purpose of construction all risk insurance policy is to provide financial protection to the civil engineering contracts in case of an unfortunate accident. A contractor all risk insurance is basically a comprehensive insurance policy designed to cover a variety of civil engineering projects such as buildings, sewage treatment plans, water tanks, airports, flyovers etc. Unless it is particularly excluded in the insurance document, construction all risk insurance policy also covers damages or losses to contract workers while executing a civil engineering work. Find out the coverage under construction all risk insurance policy in India.
In general, the coverage of construction all risk insurance plans are offered in the following two sectors:
• Material Damage Coverage:
It covers the destruction or damages or losses of the property.
• Third-Party Liability Coverage:
It covers the legal liability being imposed upon the insured contractor caused from losses or damages suffered by a third-party.


Extension of Construction All Risk Insurance Policy Coverage

However, the construction all risk insurance coverage can be further extended to cover the interests of suppliers, manufacturers, subcontractors and contractors. In addition, the contractors all risk insurance policy can be expanded to cover the following events:
• Debris removal.
• Earthquake.
• Escalation.
• Third-party liability.
• Provision for escalation.
• Terrorism.
• Air freight.
• Damage to surrounding property.
• Additional custom duty.
• Loss due to breakage of glass.
• Maintenance visits.


Benefits of Construction All Risk Insurance Policy in India

There’s no denying the fact that the construction all risk insurance policies certainly has a number of effective benefits to offer its policyholders. Find out the special benefits you can enjoy by availing contractor all risk policy online.
• Covers All Risks for Construction Projects
Contractors all risk insurance policy provides cover for all risk for under construction projects from such perils as fire, impact damage, explosion and collapse etc. For construction projects that have a as high Sum Insured as 100 crores, the policy could be enhanced to cover design defects. Contractors all risk insurance policy also covers any damage due to natural disasters such as storm, flood, earthquake, lightning etc.
• Construction Site Protection
Contractors all risk policy has been designed to cover any damage to the under construction civil projects due to sudden or accidental causes. The all risk insurance policy also covers the damage to the material purchased for the project development at the site.
• Advance Loss of Profits
An add-on cover for Construction All Risk insurance policy, Advance Loss of Profits (ALOP) can indemnify the loss of profits due to delay in start-up of the project in the event of a covered peril. Besides these, the loss of standing expenses and net profit of the project considered to fall under the Sum Insured for ALOP. But please note that a standard excess in terms of number of days is applicable before the construction all risk insurance claim is triggered.
• Customized Cover
Customized cover, in accordance to your requirements is offered under contractors all risk insurance policy in India. For instance, construction equipment like shuttering and scaffolding materials can be covered under the construction all risk insurance policy if required. When you buy construction all risk insurance from GIBL, you can be sure of availing the utmost benefits that is on offer at a reasonable premium.
• Availability of Add-on Covers
Contractors all risk insurance policy comes with a number of effective add-on covers that are connected to a claim under the main policy, for instance, owners' surrounding property. Other add-ons for contractors risk insurance policy include Escalation in Sum Insured, Loss of Documents, Additional Custom Duty, Removal of Debris etc. Each add-on is priced separately; though at higher Sum Insured, a few contractors all risk insurance add-ons could be availed at nominal cost.
• Third Party Liability Coverage
As previously stated, construction all risk insurance policies cover third party property damage that may arise due to an accident at site. Contractors all risk insurance policy also offers liability cover for fatal or non-fatal injury to persons excluding employees.


How Is the Sum Insured of Construction All Risk Insurance Determined?

The Sum Insured amount of construction all risk insurance policy is determined on the basis of the nature of the project, the time that it will take for the project to complete along with the voluntary excess applied for by the policyholder. The insurance company permits paying the premium in installments if the term of the policy is more than one year.


Events that Are Not Covered Under the Construction All Risk Insurance Policy Online

Likewise, any other insurance policies in India, builders risk policy also has a number of exclusions that are not covered under the plans. Find out the general exclusions under builders risk policy below.
• Loss or damage due to willful misconduct.
• Loss or damage due to faulty design.
• Deductible as mentioned in the policy document.
• Cessation of work, partial or total.


How GIBL Can Help You with Construction All Risk Insurance Online

GIBL is one of fastest growing online insurance broking portals. We offer general insurance policies, the best you can think of, by instantly comparing a number of insurance plans online. In terms of contractor all risk policy, we make sure that you get the best as per your budget and requirements. You can get instant quotes from GIBL on construction all risk insurance online.