Kshema Contractor's All Risk (CAR) Policy
The Kshema Contractor’s All Risk (CAR) Policy is a comprehensive insurance solution that protects contractors, project owners and other stakeholders against unforeseen physical loss or damage affecting an ongoing construction activity (under contractual obligation).
The policy also provides protection against third-party liabilities arising from construction activities, helping ensure financial security throughout the project lifecycle.
- Comprehensive protection for construction and infrastructure projects
- Covers accidental loss or damage to contract works during construction
- Protects construction materials, plant, machinery and temporary structures
- Flexible extensions available to suit project-specific requirements
Why Choose Kshema Contractor's All Risk (CAR) Policy?
Comprehensive Project Protection
Provides broad and flexible coverage against accidental physical loss or damage affecting ongoing construction activities (under contractual obligation) and project-related assets during the construction period.
Financial Security Against Unexpected Events
Helps reduce the financial impact of unforeseen events such as fire, flood, theft and accidental damage at project sites.
Third-Party Liability Cover
Protects against legal liabilities arising from bodily injury, death or property damage caused to third parties due to accidents.
Flexible Coverage Add-ons
Offers optional add-on covers that can be tailored to suit the specific requirements of different construction projects.
Suitable for Diverse Projects
Designed to suit the needs of residential, commercial, industrial, engineering and infrastructure projects of varying sizes and complexity.
Types of Contract Works and Projects Covered
- Civil construction works
- Buildings under construction
- Roads, bridges and tunnels
- Infrastructure projects
- Construction materials stored at site
- Temporary structures and site facilities
- Construction Plant and Machinery (where covered under the policy)
Buildings Under Construction
Explosion & Implosion
Accidental Death
Express Freight and Air Freight Charges
*Add-ons are available subject to underwriting and policy terms.
- Coverage commences from the start of site work, unloading of materials, or as specified in the policy schedule.
- Insurance remains in force throughout the construction period.
- Coverage ceases upon project completion, handover or expiry of the policy period, whichever occurs first.
- Maintenance Period Cover may be added where required, subject to policy terms.
Exclusions
- Policy deductibles or excesses stated in the policy schedule
- Consequential losses
- Loss of profit
- Penalties and liquidated damages
- Normal wear and tear
- Corrosion, oxidation or gradual deterioration
- Cost of correcting defective design, materials or workmanship
- Inventory shortages identified during stock-taking
Perils Not Covered
- War, invasion and war-like operations
- Nuclear risks and radioactive contamination
- Willful acts or deliberate negligence of the insured
- Pollution and contamination unless specifically covered
Property Not Covered
- Existing property not declared under the policy
- Cash, securities, bonds, stamps and negotiable instruments
- Motor vehicles licensed for road use unless specifically covered
- Watercraft and aircraft
- Property unrelated to the insured contract works
- Coverage is subject to the terms, conditions, and exclusions of the policy.
- Deductibles or excesses specified in the policy schedule will apply to claims.
- Certain add-on covers may require additional premium.
- Claims must be reported as per policy requirements for timely assessment and settlement.
- Any deductible specified in the policy schedule will apply to each claim under relevant covers.
Frequently Asked Questions
1. What is Contractor’s All Risk Insurance Policy?
Contractor’s All Risk Insurance goes beyond conventional insurance by offering tailored, comprehensive protection throughout the construction phase. It covers a wide range of unexpected incidents from accidental damage at the site and structural failures to third-party injuries or property claims linked to ongoing work. What makes this policy unique is its ability to encompass various aspects of a construction site under a single plan, offering a solid financial safety net for contractors, subcontractors, and project owner’s.
This insurance is especially crucial for projects involving multiple stakeholders, significant investments, and strict timelines. It not only covers material damage but also fosters trust among clients and partners by minimizing financial risks. The policy remains active from the beginning of groundwork until project completion and handover, making it a vital risk management tool for smooth execution and long-term business stability.
2.Why should You opt for Contractor’s All Risk Insurance Policy?
Construction sites are naturally exposed to numerous risks such as accidental damage, theft of materials, weather-related destruction, and unexpected third-party claims. A Contractor’s All Risk Insurance policy provides all-encompassing protection under one plan, covering both material damage and liability. It removes the complexity of managing multiple insurance policies and simplifies the claims process.
For contractors, developers, and financiers, this policy serves as a powerful risk mitigation strategy that helps maintain project momentum even during setbacks. It also boosts the project’s credibility with stakeholders by showcasing preparedness and accountability.
Moreover, many construction contracts require such coverage to ensure financial security and responsibility. Whether you’re constructing a home, commercial property, or large infrastructure, investing in this insurance is key to ensuring smooth and uninterrupted project progress.
3. Who needs Contractor All Risk Insurance Policy?
Contractor All Risk Insurance is vital for a wide range of professionals and institutions engaged in construction and infrastructure development. It offers broad protection against physical damage and third-party liabilities across all project stages. Whether you’re building a residential tower or a high-speed rail, this policy ensures peace of mind and uninterrupted progress.
| Stakeholder | Use Cases |
|---|---|
| Builders & Developers | Residential buildings, townships, gated communities |
| Contractors & Subcontractors | Civil works, structural erection, electrical and mechanical installations |
| Engineering Firms | Technical project execution, project management |
| Financiers & Lenders | Protecting funded projects from construction-related risks |
| Government Agencies | Infrastructure projects such as roads, bridges, and railways |
| Hospitality & Commercial Chains | Construction of hotels, malls, and business parks |
| Healthcare Institutions | Hospitals and clinics under development |
| Infrastructure Investors | Airports, metro systems, tunnels, and renewable energy sites |
4. Key Features of Contractor’s All Risk Insurance
| Feature | Description |
|---|---|
| Comprehensive All-Risk Cover | Covers all types of losses unless specifically excluded in the policy |
| Third-Party Liability | Provides coverage for legal liabilities due to third-party injury or property damage |
| Phased Coverage | Offers protection across all project stages—storage, construction, commissioning, etc. |
| Customizable Add-ons | Flexible enhancements based on specific project requirements |
| Multiple Stakeholder Protection | Includes coverage for principals, contractors, financiers, and other involved parties |
5. What are the perils covered under a Construction All Risk (CAR) policy?
- Fire and Allied Perils
- Flood, storm, tempest & cyclone
- Earthquake, fire & shock
6. What are the Exclusions under the CAR policy?
- War and Nuclear risks
- Willful Act or Willful Negligence of the Insured
- Partial/total cessation of Work
- Defective material or bad workmanship
- Normal wear and tear
- Normal Maintenance or Making Good
- Loss or damage due to faulty design
- Disappearance or shortage (inventory losses)
- Contractual liabilities
- Consequential losses
7. What are the Add on coverages under a CAR policy?
- Express freight, Holiday and Overtime
- Air freight
- Loss due to breakage of glass
- Additional customs duty
- Removal of debris
- Escalation Cover
- Cost for Offsite Storage
- Construction machineries, plant and equipment extension
- Owner’s surrounding property
- Terrorism
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- Coverage for homes, shops, and small businesses.
- Policies that safeguard against fire, lightning, and allied perils.
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