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What is not covered by a Contractors All Risk Policy?

The main part of the Contractors All Risks insurance is the Contract Works section which provides cover for the property being worked on (e.g. new house, etc.). But it’s important to be aware of what’s not covered by a contractors all risk policy.

these are just a few examples of what’s not covered by a contractors all risk policy :

  • Construction plant, equipment and tools
  • Consequential loss – loss due to delay, loss of any kind or description whatsoever including penalties, lack of performance, loss of contract, liquidated damages
  • Losses discovered when an inventory is taken
  • Existing property – unless it’s been specifically included in the cover
  • Faulty design, workmanship or materials
  • Errors and omissions
  • Stoppage of work whether total or partial
  • Willful acts or willful negligence of the Insured or of his representatives
  • Political acts ( these are insured under SASRIA)
  • The excess or the deductible stated in the Schedule

Are sub-contractors covered by a Contractor’s All Risks Policy?

This depends on the requirements of the Contract. Not all Contracts will require the Main Contractor to name sub-contractors as Insureds in their Contract Works policy. This in some cases they they are not covered by a contractors all risk policy.

Some sub-contract agreements require the sub-contractor to take out their own Contract Works Insurance and to name the Main Contractor and Principal as an Insured.

Typical contract trades for Contractors All Risks insurance cover would be general building contractors, air conditioning/heating engineers, aluminum door installers, electricians, shopfitters, bricklayers, carpenters/joiners, plumbers, plastering/partitioning/dry walling and floor/wall tiling contractors.

The Contract Works policy should follow the requirements of the Contract so it’s essential to understand the Contract properly to ensure that it mirrors the insurance policy correctly.



What is ‘Practical Completion’?

Practical Completion doesn’t mean the Contractor has finished the Works in every detail. It means the Works are sufficiently complete to be safely used by the Employer for the purpose he intended. The Contractor may still complete minor items and fix defects after Practical Completion, as long as the Employer isn’t inconvenienced.

Why you need Contractors’ All Risk insurance

All construction work, no matter the size or complexity of the project, contains an element of risk. Find out why you need Contractors All Risk Insurance.

Determining The Value Of Your Plant

To determine the value of construction plant we investigate Market Value, Fair Market Value, Replacement Cost, Replacement Value & Actual Cash Value

Contractors All Risk policy – Should You Put Your Name On It?

Dirk Gouws (Engineering Insurance expet, AC&E Engineering Underwriting Managers) explains the meaning of having your name on a Contractors All Risk policy.

Some dos and don’ts when managing a Contractor’s All Risk claim

INSURANCE FOR THE CIVIL & CONSTRUCTION INDUSTRY CALL US ON 080 777 777 1 Some dos and don'ts when managing a Contractor’s All Risk claim. Contractor’s All Risk claim , our knowledge of the industry is our key advantage in achieving outstanding claims success. Building...

What is the Defects Liability Period?

The Defects Liability Period starts when the Certificate of Completion is issued and continues for the period agreed to in the Contract. During the Defects Liability Period, the Contractor has to obey all written instructions from the Engineer to carry out repairs and fix any defects which appear in the Permanent Works, so that, at the end of the Defects Liability Period, the Permanent Works are in the condition required by the Contract.

What does Contractors All Risk cover include?

INSURANCE FOR THE CIVIL & CONSTRUCTION INDUSTRY CALL US ON 080 777 777 1 What does Contractors All Risk cover include? Contractors All Risk (CAR) insurance is usually provided on a monthly or once-off basis and provides protection for individual construction...

How Does a Contractor Claim For An Extension of Time?

A Contractor can claim for an extension of time, thus extending the Due Completion Date for a project. He can also claim for any costs which will increase due to being on site for longer (called time-related General Items).

Does a Construction All Risk Policy cover damage to surrounding property?

Yes, damage to surrounding property is covered by a construction all risk policy, provided it’s included as an add-on to the Contract Works cover. This means an extra premium would be charged to get the specified surrounding property covered.

What is a Contractors All Risk Insurance policy?

A Contractors All Risk insurance policy, provides cover for the contract works, surrounding property, contractors’ public liability, SASRIA, Special Risks..

Contractors All Risk
Construction Guarantees
Construction Liability
Professional Indemnity

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