Contractors’ All Risk Insurance

This type insurance covers civil construction projects, such as residential/commercial buildings, theatres, factory sheds, warehouses, roads, bridges, dams, reservoirs, tunnels, oil / gas pipelines, water / sewage disposal works, etc.

The cover applies during the construction period and can be extended to the maintenance period. Most contract agreements lays on the contractor for losses, damage or injury. It is solely the contractors’ responsibility to ensure that adequate insurance in place for the following:

  • Damage to the works and to the properties at the site (owner’s or contractor’s), against “all risk” of physical loss of damage both to the work itself (under construction or completed), and for your plants and equipments as well as for material destined to be incorporated into the works.
  • Loss or damage from a cause occurring prior to the commencement of the period of maintenance and for any loss or damage occasioned by the contractor in the course of any maintenance operations.
  • Damage to property or persons. Clauses do not refer to legal liability but simply asks for indemnity against any damage, loss or injury, which may occur to any property.


It is often recommended that the policy should be extended to cover: –

  • Transit from storage area to site
  • Overtime, airfreight and emergency charges to speed up replacement work consequences of faulty workmanship, defective materials or faulty designs.