A Construction site is susceptible to all sorts of accidents. Losses can mount from
pilferage, theft, damage, legal claims and more.
As a contractor we understand the need to ensure completion within the deadlines.
To this end HDFC ERGO has the Contractor’s All Risk Insurance policy that covers
the risks during construction, comprehensively. It includes physical loss or damage
to property, plant, machinery and tools, works brought on to the site and temporary
works erected on-site, as well as third party liability related to work conducted
on the site.
The policy is designed to cover civil engineering projects such as buildings, roads,
airports, flyovers, water tanks, sewage treatment plants, etc.
Unless specifically excluded, this “all risk” insurance covers accidental physical
loss or damage to contract works during the execution of a civil engineering project.
Coverage begins from the commencement of work or after unloading of the first consignment
at the project site, whichever is earlier, and terminates on handing over of the
works to the principal or on expiry of the policy, whichever is earlier.
Coverage can be extended to include the interest of suppliers / manufacturers, contractors
and subcontractors.
- Earthquake
- Act of terrorism
- Escalation
- Limited maintenance cover
- Extended maintenance cover
- Clearance and removal of debris
- Damage to owner’s surrounding property
- Third party liability
- Cross liability
- Express freight, holiday and overtime rates of wages
- Contractor’s plant and machinery
The Sum Insured shall be the fully completed value of the contract works, inclusive
of all materials, wages, freights and customs duty, and materials or items supplied
by the principal.
This depends on the type of project, Sum Insured and duration of the project, and
the voluntary excess opted for by the Insured. The premium can be paid in installments,
when the policy period is more than 12 months.
The policy has the following types of excess:
- Excess due to normal perils
- Excess for collapse as well as act of God perils like earthquake, flood, storm,
etc.
- Excess due for terrorist acts, if terrorism cover is opted for
- Excesses under the policy depend upon the type of construction work carried out
The policy does not cover:
- Loss or damage due to willful misconduct
- Cessation of work, whether total or partial, and delay
- Damage due to faulty design
- Rectification of defective material and/or workmanship, inventory losses, etc.
- Deductible as stipulated in the tariff