Construction All Risk Insurance is effectively a form of property insurance that covers the period while the property is still under construction. It’s possible for the property owners to take out such a policy, though more commonly it’ll be a policy they insist the contractors take out.
Construction All Risks (CAR) Insurance offers comprehensive and adequate protection against loss or damage in respect of:
- Contract Works / Structure under Construction including Materials to be Incorporated herein.
- Construction plant & Equipment and or construction Machinery to be used on Site.
- Temporary structures e.g. Stores, Workers Camps.
- Third Party Liability – Injury, Death, Property Damage.
In connection with the execution of a building project.
In practice, the cover is provided to all parties jointly i.e.
- Financier (bank etc)
However, the greatest contractual exposure lies with the contractor. It’s important to be aware of what builders’ risk insurance doesn’t cover. Unless specifically stated, it won’t cover specific increased risks such as flooding on a beachfront construction or earthquakes near a fault line. It also doesn’t cover injuries suffered by workers, meaning you’ll still need any legally-required workers’ compensation WIBA Insurance coverage, as well.
If Construction All Risks Insurance sounds right for you, contact us today for a quote.