What is Contractor All Risk Insurance ?
The Contractor all Risk insurance policy is specially designed to cover engineering projects involving construction of buildings and other civil engineering work. The policy covers the work
to be executed in accordance with the contract, temporary works, materials, construction plant and equipment brought into the site and liabilities arising out of the performance of the contract.
Mostly, small or large contractors companies need to take this policy every time a project is carried out, so that their risk of exposure can be minimized.
What are the covers / benefits provided in contractor all risk insurance?
Section I – Material Damage
- It covers almost any sudden and unforeseen physical loss or damage occurring (except as specifically excluded in the policy) to the contract works/property/items insured, during the period of insurance.
Section II – Third Party Liability
- This Section is in respect of third party liability for which we shall become legally liable to pay as damages consequent upon:
(i) accidental bodily injury to or illness of third party
(ii) accidental loss or damage to property belonging to third party
Duration of cover corresponds with the contract period which is stipulated in the Letter of Award.
What are the major exclusions under this contractor all risk insurance Malaysia policy?
- War, Civil War and any act of terrorism
- Radioactive and nuclear energy risks
- Willful acts or willful negligence
- Wear and tear
- Faulty design
- the cost of replacement, repair or rectification of defective material and/or workmanship
- Mechanical and/or electrical breakdown or derangement of construction plant and machinery
- Consequential loss of any kind
- Seepage, Pollution and Contamination
More information about our Contractors’ All Risks insurance or other types of insurance product, you can contact us by click on the link or for fast response can directly click WhatsApp button on top of the page
