Contractor All Risk Insurance
What is Contractor All Risk Insurance?
Contractor All Risk Insurance is part of our Commercial Insurance policies. Are you a contractor involved in construction? Are you aware of all the risks involved on your site?
With the growth of the construction sector in the GCC and the UAE in particular, contractors are awarded contracts worth millions of dollars that carry inherent risks.
A number of issues could go wrong within a construction project, this includes:
- Damage to existing structures
- Machinery
- Tools
- Injuries
- and much more.
The list could be quite extensive and the last thing any contractor needs is an accident where the contractor’s income is lost to such incidents.
How does Contractor All Risk Insurance work?
The policy can also cover:
- Public liabilities
- Installations of machinery and tools
- Existing structures and anything built on those structures.
Contractor All Risk Insurance Policy Exclusions
- War and nuclear risks
- Willful negligence
- Bad workmanship or defective material
- Normal wear and tear
- Damage or loss due to faulty design
- Loss of inventory
Benefits of Contractor All Risk Insurance
It’s also important to note that all risk insurance can be purchased by the builder, the property owner, and/or the developer. For a small investment, all risk coverage provides a great deal of extra value.
Advantages to investing in contractors all risk policies include:
- Extended comprehensive coverage – your business will be more fully covered against unforeseen accidents and mishaps.
- Increased business potential – Potential clients will be drawn to the prospect of working with a business that provides this comprehensive level of coverage.
- Enhanced peace of mind – this additional coverage is designed to cover many things you might not think of on your own.
Special considerations
Contractor all risk coverage may be extended to cover the interests of manufacturers, suppliers, contractors, and subcontractors. The policy can also be written to provide coverage for the following events:
- Additional custom duty
- Airfreight
- Damage to surrounding property
- Debris removal
- Earthquake
- Escalation
- Loss due to breakage of glass
- Maintenance visits
Who can benefit from Contractor All Risk Insurance Coverage?
Contractor’s all risk Contractor All Risk Insurance is designed to protect anyone involved in the construction business, such as:
- Contractors
- Purchaser or owner
- Companies financing a project
- Businesses commissioned to carry out construction work, including subcontractors
In particular, Contractor All Risk Insurance is useful to those construction projects affiliated with Expo 2021 Dubai. The need to finish many construction projects before the end of the year can present risks to owners, developers, and construction firms.