Building Contractor Insurance Scope Coverage and Exclusions
Building Contractor Insurance- Scope, Coverage and Exclusions
"Building Contractor Insurance or Contractors All Risks Policy is a comprehensive insurance which provides complete protection against all types of civil construction risks.
Coverage: All types of civil engineering works, ranging from small buildings to massive dams are exposed to damage from a wide range of causes such as fire, lightning, flood, inundation, storm, cyclone and other accidental damages.
Scope: It is an all risks insurance policy covering loss or damage to the property by any cause other than those excluded. In particular the cover includes-
- Fire, lightning, explosion, aircraft damage
- Riot, strike, malicious act
- Flood, inundation, storm, cyclone and allied perils
- Landslide, subsidence and rockslide
- Burglary and theft
- Faults in erection
- Human errors, negligence
- Short circuiting, arcing, excess voltage
- Electrical and mechanical breakdown
- Collapse, damage due to foreign objects, impact damages
Extensions Cover: Extensions Cover can be extended to include up to a limit chosen by you on the following on payment of additional premium-
- Third Party liability
- Cross liability
- Earthquake
- Cost of removal of debris
- Express freight, overtime charges
- Air freight
- Additional customs duty
- Escalation
- Owner's surrounding property
- Storage risk at Fabricator's Premises
- Breakage of glasses
- Maintenance cover-Visits, Extended maintenance
- Cost of tools and tackles and material handling equipment used for construction purposes
Exclusions: Some of the exclusions under the policy are-
- War Invasion
- Nuclear Reaction Nuclear Radiation or Radioactive Contamination
- Insured's Contribution Deductible
- Willful Act or Willful Negligence of the Insured
- Cessation of Work
- Defective Material or Bad workmanship
- Wear Tear Corrosion Oxidation Deterioration
- Normal Maintenance or Making Good
- Disappearance or Shortage Inventory Losses
- Faulty design
- Loss of files, drawings, cash, cheques etc
- Consequential Loss
- Terrorism
Excess Deductible: It is standard to apply excess to claims as neither the client nor the insurer wishes to be troubled with handling small losses. To comply with a client's wishes e.g. contract conditions, financial policy or risk management programme, higher excess may be applied, with a suitable reduction in premium.
Going beyond the physical damage, future earnings of a business that has been prevented from operating, due to a delay in completing a construction or erection contract, could be protected by Advance Loss of Profit insurance.
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