CONTRACTOR ALL RISK

 

Provides cover for all risks of damage, loss or destruction of contract works, whether permanent or temporary including materials and other things meant for incorporation into the works.

 

It also provides indemnity which the insured collectively or individually, including all participants to the yard shall become liable to pay, according to the law in force, in respect of claims arising out of accident and consequential losses to third party provided that such accident, injury, damage or loss results from activities in connection with the performance of the contract.

 

The policy could be effected to cover a specific project. It could equally be effected on open basis

where all projects (falling within the previously agreed limits) are declared prior to commencement of such projects based on the prior declarations, premiums are then adjusted at the end of the policy period.

 

This policy is designed for use by contractors, or employers of contractors, where contract conditions do not require (compel) the contractor to insure.  It is usually divided into two major sections:

 

• MATERIAL DAMAGES

    Contract Works

All risks of loss or damage to the whole of the contract works whether permanent or temporary including materials incorporated therein the property of the insured’s or for which they are responsible (but excluding contractors tools, plant and equipment) whilst on the site of work or in transit thereto.

           

    Temporary Buildings

Temporary buildings meant for residential offices and stores together with their contents including contractors stock in warehouse, spare parts and tools, office furniture, fittings and equipment the properties of the insured’s or for which they are responsible whilst at the contract site or in transit thereto

 

• THIRD PARTY LIABILITY

Legal liability to third parties for accidental bodily injury or death and/or damage to property including all costs incurred in defending claims for such compensation arising out of and in connection with the execution of the contract works.