Contractor's All Risk Insurance
Contractor’s All Risk Insurance provides comprehensive coverage to all works to be executed in accordance with the contractor’s contract, temporary works, material, construction plant and equipment brought into the site and liabilities arising out of the performance of the contract. The policy covers against accidental and unforeseen physical loss or damage to the property insured occurring during the period of insurance.
Under the material damage section of the policy, any sudden and unforeseen physical loss or damage caused by fire, lightning, explosion, flood, inundation, windstorm of any kind, earthquake, theft, burglary, bad workmanship, negligence, lack of skill, lack of experience, malicious acts or human error, or any other sudden and unforeseen event such as loss or damage due to collapse, foreign objects and on-site transport of items to be constructed are covered.
The liability section of the policy provides indemnity in respect of third party liability which the insured shall become legally liable to pay as damages consequent upon :
- Accidental bodily injury to or illness of third parties; or
- Accidental loss of or damage to property belonging to third parties
Occurring in direct connection with the construction of the contract works and happening at or in the immediate vicinity of the construction site.
