What is Construction All-Risk (CAR) Insurance?

A construction all-risk insurance policy is a type of property insurance that offers all-inclusive protection against any loss/damage related to contract work, construction plant, equipment, and machinery, along with any bodily injury that might occur during the civil-engineering project. The construction industry in India has a high accident frequency rate, and these accidents that occur on construction sites are highly under-reported. Thus, it becomes more essential to have CAR insurance. Moreover, this CAR policy can be taken by the investor or by the contractor in a project as it provides "all risks" coverage.

Why Do You Need Construction All-Risk Insurance?

• Construction all-risk insurance is designed to protect civil contractors against the damage of different construction projects. Any accidental damage to these projects or machinery is covered under this policy.Thus, the reasons why a construction all-risk insurance policy is required are:
• Most of the plans under this insurance cover civil engineering projects where the civil work is more than 50% of the total value of the contract.
• The plan covers the project from the time of storage, and construction until the project is handed over to the principal.
• It is very useful when there is damage to the construction project..

Who Needs Construction All-Risks Insurance?

• This aforementioned insurance policy can be availed by those who are involved in the construction business in any way, like-
• Construction Companies : Companies in the construction business can buy this policy to protect themselves financially from unforeseen circumstances.
• Finance Companies : The Construction All-Risks insurance policy can also be availed of by the companies that financially support the entire project. As it helps in case some incident occurs during the construction phase.
• Property Owners : The property owners can also buy insurance for where the construction is happening, as they are the ones who have given the task to the contractor.
• Contractors and Subcontractors : The contractors and subcontractors that employ workers to perform specific tasks related to the completion of the construction project can buy this insurance policy.

What Will a Construction All-Risk Insurance Policy Cover?

• The following coverages are offered under the construction all-risk insurance policies:
• Material Damage : If any damage occurs to the property during the policy period, it will be covered up to the specified amount under the policy. The policyholder will be reimbursed for the costs incurred for the clearance and removal of debris.
• Third-party Liability : The CAR insurance policy will compensate you against all legal liability for property loss or for fatal/non-fatal injury to any person other than your own employees.
• Compensation : The given policy will also provide compensation for all your expenses in litigation recovered by a claimant or anyone who has invoked it with your written consent.

What is Not Covered in the Policy?

• The construction all-risk insurance policy doesn't offer coverage for the following:
• War and nuclear risk
• partial/complete cessation of work
• Willful negligence of the insured
• Bad workmanship
• Contractual liabilities
• Normal maintenance
• Normal wear and tear
• damage/accident due to faulty design

How to File a Claim for Construction All-Risks Insurance?

• To file a claim under the CAR insurance policy, you have to follow the below-mentioned steps:
• Contact the insurer and inform them about the incident/accident.
• Give the details of the incident and the policy number
• Your claim will be registered, and you will be given a claim registration number.
• A survey of the damage that occurred is conducted.
• Once the surveyor gives a thumbs up, the insurer confirms the financial and legal liabilities before settling the claim.

To Sum Up!

Buying office insurance online can have various benefits. It will save you precious time that you can use to expand your business. With online office insurance, claims can be made easily and settled smoothly. You will find many office insurance policies, even with traditional companies, but deciding on the right office insurance can be quite confusing. This is where Policywings comes in!With Policywings, you will be choosing the best office insurance policy to protect your office and, thus, your business.