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PRODUCT OVERVIEW
Construction and civil engineering projects are exposed to multiple operational and financial risks throughout the execution phase, ranging from accidental damage at the site to third-party claims and machinery-related losses. Contractor’s All Risk (CAR) Insurance or Project Insurance offers end-to-end coverage for such exposures, helping contractors, project owners, and infrastructure developers manage unexpected financial setbacks arising during the course of construction. The policy covers physical loss or damage to contract works, construction plant and equipment, and liabilities towards third parties caused by incidents such as fire, theft, natural catastrophes, collapse, or accidental site damage. Coverage generally commences from the unloading of materials at the project location and continues until project completion, helping businesses manage financial exposure arising from accidental project-related losses during the construction period.
Reason
Designed for construction, civil engineering, and infrastructure-related project risks.
Covers accidental loss or damage from project commencement until completion.
Protects against legal liabilities arising from third-party injury or property damage.
Helps reduce financial disruption caused by unforeseen project incidents.
Supports contractors and businesses in meeting project insurance requirements.
Transfers major project-related financial risks to the insurer.
Covers construction plant, machinery, equipment, and site materials against insured perils.
Supports contractual insurance requirements for project tenders, financiers, and infrastructure contracts.
Eligiblity
Companies undertaking construction and infrastructure projects can secure financial protection against project-related risks and accidental losses.
Contractors and subcontractors involved in execution, labour management, and site operations can safeguard themselves against operational and liability risks.
Builders and real estate developers can minimise financial exposure arising from damage to ongoing construction works or third-party claims.
Project owners can opt for coverage to protect their financial interest in projects executed through appointed contractors and subcontractors.
Banks, NBFCs, and project financing companies may require CAR Insurance to safeguard funded construction projects against unforeseen events.
PREMIUM
The premium depends on the total project value insured, including any escalation coverage opted under the policy.
Projects involving complex construction activities or higher operational risks generally attract higher premium rates.
Projects with strong safety measures, risk controls, and site protection practices may benefit from lower premiums.
Projects located in flood-prone, earthquake-prone, or high-risk areas may have higher premium costs.
Longer project timelines usually increase premiums due to extended exposure to construction-related risks.
Selecting additional covers or policy extensions can increase the overall premium payable under the policy.
INCLUSIONS & EXCLUSIONS
Material Damage Cover
Covers accidental loss or damage to contract works, site materials, and construction property due to fire, theft, collapse, or natural calamities.
Third-Party Liability Cover
Protects against legal liabilities arising from bodily injury, death, or property damage caused to third parties during project execution.
Testing & Commissioning Risks
Coverage may extend to risks arising during testing activities, including short circuits, electrical leakage, or equipment failure, subject to policy terms.
Handling & Operational Risks
Includes losses caused by handling accidents, crane failure, impact damage, negligence, strike, riot, or malicious acts at the site.
Litigation & Compensation Expenses
Covers legal expenses, compensation costs, and claim-related liabilities admissible under the policy conditions.
Defective Design or Faulty Workmanship
Losses arising due to defective design, poor workmanship, or use of faulty materials are not covered.
Normal Wear & Tear
Gradual deterioration, corrosion, and routine wear and tear fall outside the scope of coverage.
Maintenance & Improvement Costs
Expenses related to regular maintenance, alterations, or project improvements are excluded.
War & Nuclear Risks
Damages caused by war, terrorism, nuclear risks, or intentional acts by the insured are not covered unless specifically included.
Documents & Contractual Losses
Loss of drawings, files, accounts, bills, and contractual liabilities is not covered under the policy.
Policy Excess & Site Material Stock Losses
Losses falling under the deductible amount or identified only during stock-taking are not admissible.
ADD-ONS
Covers accidental damage to neighbouring properties caused by construction activities at the insured project site.
Protects construction machinery and equipment against accidental loss or damage during the project period.
Provides coverage for damage discovered during the maintenance period that is linked to the contractor's completed work.
Covers accidental damage to the completed project that occurs during the policy's maintenance period.
Offers protection against loss or damage to construction materials and stored inventory at the site.
Covers the cost of clearing and removing debris following an insured loss or damage event.
Provides financial protection against losses resulting from acts of terrorism affecting the insured project.
Covers risks associated with water well drilling operations, including damage to drilling works and equipment.
Extends coverage beyond the standard maintenance period for continued protection of the completed works.
Reimburses expenses incurred for firefighting activities undertaken to control or minimise insured losses.
Provides coverage for construction projects and related operations carried out in offshore or marine locations.
COVERFOX EDGE
Get access to Contractor's All Risk policies from trusted IRDAI-approved insurers for reliable project risk protection.
Receive guidance from insurance experts to help identify suitable coverage based on your project requirements.
Coverage options can be aligned with different construction, infrastructure, and EPC project needs.
Enjoy a smooth and streamlined process for policy issuance, documentation, and servicing.
Get assistance throughout the claims process to help minimise operational and financial disruptions.
CLAIMS
Coverfox will assist the policyholder with the claim resolution. The employer must follow these steps to raise a claim for WC policy through Coverfox:
Notify the Coverfox support team through help@coverfox.com immediately after the loss or damage occurs.
Provide policy details, incident information, photographs, and other required documents to register the claim.
The insurer may appoint a surveyor to inspect the site and assess the extent of the reported loss or damage.
Submit the claim form, invoices, repair estimates, FIR (if applicable), and supporting project documents for verification.
The insurer reviews the documents and surveyor’s report before processing and settling the claim as per policy terms and conditions.
Contractor’s All Risk Insurance is a project insurance policy that covers accidental loss, damage, and third-party liabilities during construction and infrastructure projects.
It helps businesses manage financial risks arising from construction-related accidents, natural calamities, third-party claims, and operational disruptions.
The policy is suitable for contractors, subcontractors, builders, developers, EPC firms, project owners, and project financing companies.
The premium depends on factors such as project value, nature of work, project location, duration, safety measures, and add-on covers selected.
The policy can cover residential, commercial, industrial, infrastructure, civil engineering, and erection-related projects.
The policy generally covers material damage, third-party liabilities, construction equipment, natural calamities, and accidental project-related losses.
Yes, theft and burglary-related losses may be covered, subject to policy wordings, site security conditions, and insurer terms.
Yes, the policy covers legal liabilities arising from third-party bodily injury, death, or property damage during construction activities.
Coverage for construction plant, machinery, and equipment can be included under the policy or all-risk insurance.
Yes, losses caused by events such as floods, storms, earthquakes, landslides, and inundation are generally covered under the policy.
The policy period usually depends on the project duration and can be extended subject to insurer approval.
Yes, the policy can typically be extended if the project timeline increases beyond the original completion period.
Yes, the policy may be cancelled as per the insurer's terms, subject to applicable conditions and cancellation charges.
Project details, estimated project value, construction scope, project duration, and proposer details are commonly required.
Yes, businesses can opt for add-on covers based on project-specific risk requirements.
Disclaimer
Contractor’s All Risk Insurance coverage, inclusions, exclusions, add-on availability, premium, and claim settlement are subject to insurer underwriting guidelines, policy terms, project risk assessment, and applicable conditions. Please refer to the policy wording for detailed coverage scope, exclusions, deductibles, and claim process before purchasing the policy.
