Financial Protection

Contractors All Risk insurance helps you recover quickly from losses caused by fire, flood, theft, collapse, or other accidents on site. It pays for the cost of repairs, replacements, and damage control. You do not have to manage these expenses from your own funds.

Peace of Mind

With the right insurance in place, you can focus on completing the project. You do not need to worry about sudden risks or unexpected events. The policy handles the financial stress so you can manage the work smoothly.

Business Continuity

Accidents on site can stop the work and delay the entire project. CAR Insurance helps you resume operations quickly by covering damages and legal costs. This reduces downtime and helps you avoid project penalties.

Third-Party Liability Cover

If someone near the site is hurt or their property is damaged, Contractors All Risk Insurance covers medical and legal costs. This protects your business from legal trouble and helps maintain your reputation.

Material and Machinery Cover

Construction materials, tools, and machinery are expensive. If they get damaged or stolen, the policy helps recover the loss, so your work does not suffer.

Confidence to Take Bigger Projects

Having proper insurance builds trust with clients, investors, and project owners. It shows that your company is professional, prepared, and reliable.

Real Estate Developers

Builders working on homes, offices, or malls need protection from delays, cost overruns, or on-site accidents. A CAR policy helps cover these risks and keeps the project moving.

Civil Contractors

Whether it is building a road or a water pipeline, civil contractors work in tough environments. This policy gives them cover against unexpected damage and loss.

Construction Companies

Firms that run multiple construction sites can face a range of risks, from fire to theft. A CAR policy provides a safety net for each site under one plan.

Infrastructure Companies

Large-scale works like highways, metro lines, or power plants involve expensive materials and long timelines. CAR Insurance helps prevent financial setbacks and work stoppages.

Government Contractors

Government tenders often require insurance before work begins. A CAR policy meets this need and also protects the contractor during the entire project.

Interior and Fit-Out Contractors

Even small jobs like office interiors can face damage from short circuits, leaks, or tool theft. This policy covers the cost of fixing such issues without delay.

Sub-Contractors

Those handling plumbing, electricals, or air-conditioning can also be affected if something goes wrong. Contractors All Risk Insurance helps them complete the job without unexpected losses.

Covers Site Damage and Materials

The policy covers damage to the structure under construction, temporary works, materials, and stored items. It includes risks like fire, flood, theft, and collapse, which are common on site.

Third-Party Liability Cover

If someone outside the project is injured or their property is damaged, the policy pays for legal costs, compensation, and medical expenses. This helps protect your business from legal issues.

Tools, Machinery, and Testing Error

You can include cover for tools and machinery used on site. The policy also protects against damage caused by site accidents or mistakes during testing.

Full Project Lifecycle Protection

The cover starts when work begins and continues until the project is completed and handed over. You can also add extensions like debris removal or cover for nearby property if needed.

Section I – Material Damage

This part covers accidental loss or damage to the works and materials used in construction. It includes:

• Earthquake (fire and shock)
• Collapse of structures during construction
• Storms, floods, cyclones, tempests, and inundation
• Fire
• Theft and burglary
• Explosions and implosions
• Riots, strikes, and malicious damage
• Testing and commissioning risks
• Landslides or rockslides

Section II – Third-Party Liability

This part covers legal liability for injury or property damage caused to someone outside the construction project. It includes:

• Accidental damage to third-party property
• Injury or death of a third party caused by construction activities

Debris Removal Cover

This add-on pays for the cost of clearing debris after an insured event like fire, collapse, or flood. It helps get the site ready for work to continue.

Terrorism Cover

This covers loss or damage caused by terrorist activity at the construction site. It is especially useful for projects in high-risk areas.

Maintenance Period Cover

After a project is completed, minor faults may appear during the defect liability period. This add-on covers damage that happens during the maintenance phase, usually 3 to 12 months after handover.

Off-Site Storage Cover

Sometimes, materials or machinery are stored away from the site before use. This cover protects such items while in transit or temporary storage.

Cessation of Work Cover

If the project is paused due to unavoidable reasons (like legal or funding issues), this add-on covers damage that may occur during the period of inactivity.

Owner's Surrounding Property Cover

Construction work can accidentally damage nearby structures. This add-on protects the client’s surrounding buildings or property from such incidents.

Wilful Acts or Negligence

Loss or damage caused by intentional actions, carelessness, or ignoring safety measures is not covered.

War and Allied Perils

Any loss due to war, invasion, civil war, rebellion, or similar events is excluded.

Lost or Misplaced Inventory

Missing stock or materials without clear evidence of damage or theft is not included in the cover.

Consequential Losses

The policy does not pay for indirect losses such as loss of profit, penalties, or delays caused by covered events.

Worker Injuries

Injuries to employees or labourers are not covered under this policy. These are usually handled under a separate Workmen’s Compensation Insurance.

Wear and Tear

Gradual damage due to regular use, ageing, or lack of maintenance is not covered.

Notify Us

As soon as the loss or damage happens, contact us within 2 days. Share all relevant details and documents, such as photos or reports. We will make sure the process starts without any delays.

Surveyor Visit

Once notified, a surveyor will visit your site within 1–2 days to assess the damage. Please avoid moving any damaged items until the surveyor arrives. After that, we will take care of the next steps.

Submit Required Documents

We will guide you through submitting the necessary documents, including the claim form, incident notes, and financial records. Our team will ensure everything is submitted correctly and on time.

Claim Assessment & Approval

Once the documents are submitted, the surveyor will evaluate the claim and provide a settlement amount based on your policy terms. After approval, the insurer will finalise the settlement.

Payment Processing & Claim Closure

Once the settlement is approved, payment will be processed and issued to you or your beneficiary. After payment, the claim will be closed. If any further issues arise, we will be here to support you until they are fully resolved.

Structural Collapse Due to Heavy Rain

In 2023, a construction firm in Nagpur was building a commercial complex when sudden, heavy rain caused part of the structure to collapse. Scaffolding and cemented slabs were severely damaged. The company raised a CAR Insurance claim. The insurer paid ₹18 lakhs for rebuilding materials, labour costs, and structural support. The support helped the company avoid extended delays and continue the project without financial strain.

Third-Party Injury from Falling Debris

In 2019, at a construction site in Jaipur, loose debris fell from a partially built floor and injured a passer-by near the site boundary. The person suffered a fractured arm and filed a legal claim. The builder’s CAR policy included third-party liability cover. The insurer paid ₹2.5 lakhs towards medical expenses and legal settlement. This helped the builder avoid personal liability and maintain their project schedule.

Fire Damage During Testing Phase

In 2021, an electrical fault triggered a fire during the final testing phase of a residential project in Surat. The fire damaged wiring, switchboards, and part of the false ceiling. The contractor raised a CAR Insurance claim. The insurer covered ₹6 lakhs for repairs and ₹1.2 lakhs for removal of debris. The timely payout helped the contractor complete the handover without penalty.