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What is not covered by a Contractors All Risk Policy?

by | Jul 31, 2018 | Contractors All Risk

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.



Why is a Contract Works Policy Necessary?

When it comes to planning a new construction project, insurance doesn’t always get the priority it requires, with contractors often wondering whether it is really necessary to take out a contract works policy at all. Very often the contract works policy is arranged at the last minute, or even after the project has already started.

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Read the history >> Construction of the tallest building in South Africa, the Carlton Centre. Built in 1973 and designed by architects Skidmore & Owens.

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.

Three ways to insure your plant

Civilsure understands the importance and necessity of comprehensive plant insurance at a reasonable rate. We also know that you expect impeccable service and attention to detail at claims stage. That is why we are committed to helping you choose the correct plant all risk (PAR) for your business needs.

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..

When a Disgruntled Employee Sabotages Your Structure…

Does Contractors Liability on the Contractors All Risk policy cover damages to a structure, caused by a disgruntled employee’s pre-meditated sabotage?

Plant All Risk Advice

“PAR” stands for Plant All Risks, and is a section of insurance cover that is intended to cover all types of construction plant i.e. mobile yellow metal plant such as Graders, TLB’s, Excavators and / or non-mobile construction equipment such as scaffolding, generators and small tools. These are typically used on construction and civil engineering projects ranging from residential to commercial to large infrastructure projects. A PAR policy will cover risks that are fortuitous working accidents/ sudden and unforeseen losses or damages…

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.

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

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Civilsure Construction Guarantees
Civilsure Contractors All Risk
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Civilsure Construction Liability
Civilsure Trade Credit
Civilsure Professional Indemnity

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