What Does a Contractor`s All Risk Policy Cover

As a contractor, you are exposed to a vast array of risks and uncertainties while executing your projects. These risks range from damage to the property, injuries and accidents, theft, and even natural disasters. It is essential to have the right insurance cover to protect you from such risks. A Contractor`s All-Risk Policy provides comprehensive coverage against all the risks and losses that may occur during a construction project.

The Contractor`s All Risk policy is designed to cover a wide range of risks that a contractor may be exposed to during the construction process. The policy covers both third-party liability and damage to the project site and construction materials.

Here are some of the key things that a Contractor`s All Risk policy covers:

1. Damage to the property – The policy covers damage caused to the construction site, including the building in progress, surrounding structures, and construction materials. The cover applies to damage caused by fire, flooding, earthquakes, and other natural calamities.

2. Third-party liability – The policy covers claims arising from bodily injury and property damage to third parties, such as pedestrians or neighboring buildings. This may include legal costs and compensation for injury and property damage.

3. Equipment and machinery – The Contractor`s All Risk policy also covers damage or loss of construction machinery, equipment, and tools that are used on the construction site.

4. Accidents and injuries – The policy includes cover for accidents, injuries, or fatalities that occur to workers on the construction site. This may include medical expenses, loss of income, and compensation for permanent disabilities.

5. Delay in project completion – The policy also covers losses incurred if the project completion is delayed due to unforeseen circumstances beyond the contractor`s control. The policy pays for additional expenses incurred due to the delay, including costs of hiring additional workers and extending the project timeline.

The Contractor`s All-Risk policy is flexible and can be customized to meet the specific needs of a construction project. The policy can be extended to cover risks such as terrorism, war, and political unrest, among others.

In conclusion, a Contractor`s All-Risk policy is essential for any construction project, as it provides comprehensive coverage against all the risks and losses that may occur during the construction process. It is advisable to consult an experienced insurance broker to help you determine the best coverage for your construction project and avoid making costly mistakes. Understanding what a Contractor`s All Risk policy covers will help you make informed decisions and protect yourself against potential risks and losses.