Contractors All Risk Insurance UAE

Certain unexpected events can arise during the course of a project involving the construction of a building and civil engineering works, which could result in significant financial loss to the contract works, construction of plant and machinery, or the principals due to damage to the contract works as well as third party claims. The purpose of the contractors all risk policy is to protect the Principal's and Contractors' interests against these types of losses. Our contractor all risk policy online offers you comprehensive insurance coverage for any unexpected events beginning the moment the material is unloaded at the project site and continuing through storage, actual construction or erection, test run completion, and, if insured, maintenance.

Eligibility for Contractors All Risk Insurance

  • Contractors/Subcontractors and Builders

    Construction all risk insurance protects against potential losses from damage to the construction site, theft of materials, or third-party injuries. This promises that builders can manage unexpected incidents without financial strain, maintaining project continuity and protecting their investment.

  • Construction Companies and Project Owners

    Construction companies and project owners need construction all risk insurance to cover unexpected damages or delays. This policy protects their financial interests, mitigates risks, and promises project timelines are met, maximizing overall project reliability and profitability.

  • Companies Financing the Project

    Companies financing construction projects need construction all risk insurance to protect their financial investments. It ensures that unexpected incidents do not derail project completion or escalate costs, offering financial security and confidence in the project's successful and timely completion.

Documents Required for Contractors All Risk Insurance UAE

You need to submit certain essential documents to buy construction all risk insurance:
  • Detailed description of the construction project
  • Bill of quantities/Project cost estimates
  • Project timeline
  • Details of subcontractors
  • Risk assessment report
  • Previous insurance claims history
  • Relevant construction licenses and permits.
  • Site plans and layouts
  • Financial statements

Inclusions in Contractors All Risk Insurance Dubai, UAE

  • Location risks such as housebreaking, theft, fire, burglary, lighting, etc.
  • Acts of God such as subsidence, tempest, earthquake, hurricane, inundation, storm, rockslide, flood, landslide, etc.
  • Testing and commissioning risks such as insulation failure, explosion, failure of safety devices, short circuit, leakage of electricity, etc.

Exclusions in Contractors All Risk Insurance Dubai, UAE

  • Penalties for operational flaws and failure to fulfill contractual commitments
  • Damage to bills, accounts, files, and drawings
  • Damage or loss due to bad workmanship, faulty design, and defective material or casting.
  • Contractual liabilities, third-party liability, and accidents caused by water, road, and airborne vehicles
  • War and nuclear perils and consequential losses
  • Cost of correction or rectification of any error during construction not resulting in physical loss
  • Terrorism damage coverage
  • Costs of any improvements, additions, and alterations after a claim
  • Cessation of work whether partial or total

Who Needs Contractors All Risk Insurance UAE?

Contractors need to think about purchasing construction all risk insurance if they want to shield themselves from potential financial liability for injuries or property damage sustained during a construction project. You can feel secure knowing that, in the event of an unexpected circumstance at work, these expenses would be paid for with a contractors all risk policy coverage. Knowing that your firm can survive under such bad conditions can ease your mind.

Factors Affecting the Cost of Contractors All Risk Insurance

  • Project value
  • Project duration
  • Type of construction
  • The geographical location of the project
  • Scope of coverage
  • Contractor's experience and claims history
  • Risk management practices
  • Subcontractor involvement
  • Policy limits and deductibles
  • Regulatory requirements

Importance of Contractors All Risk Insurance UAE

Construction all risk insurance is crucial in the UAE for comprehensive coverage against property damage, theft, and third-party liability, promising financial security for construction projects. It helps in regulatory compliance, a critical factor for getting permits and licenses. By managing and mitigating risks, contractors all risk insurance Dubai and the UAE allows contractors to concentrate on project completion without financial worries. It also safeguards all parties involved, maximizes company credibility, promises work continuity, and covers third-party liabilities, building a secure and reliable construction environment. Overall, CAR insurance is essential for safeguarding construction projects and promising their successful, uninterrupted execution.

Benefits of Purchasing Contractors All Risk Insurance

  • Comprehensive protection

    Covers several risks including theft, third-party liabilities, and property damage promising all aspects of the construction project are protected.

  • Financial security

    Provides financial compensation for replacements/repairs due to unexpected damages, preventing financial losses and promising project continuity.

  • Regulatory compliance

    Helps meet local regulatory requirements, which are mandatory for getting construction licenses/permits, promising smooth project execution.

  • Risk management

    Maximizes risk management by transferring potential financial risks to us, allowing contractors to concentrate on their core activities.

  • Project continuity

    Ensures that construction can continue without major disruptions in the event of damages or accidents, maintaining projects on schedule.

  • Third-party liability coverage

    Covers legal liabilities arising from property damage or third-party injuries, safeguarding contractors from potentially costly lawsuits.

  • Enhanced credibility

    Maximizes the reputation and credibility of construction firms, making them more attractive to investors and clients.

  • Protection for all stakeholders

    Provides coverage for all parties involved in the construction process, including project owners, building a secure working environment.

  • Customizable coverage

    Policies can be customized to the specific risks and needs of the project, promising adequate protection for unique project requirements.

  • Peace of mind

    Offers peace of mind to project owners and contractors, knowing that they are protected against unexpected circumstances and financial losses.

Features of Contractors All Risk Insurance

  • Covers several risks and perils.
  • Covers physical loss or damage to the construction works, materials, and equipment on-site.
  • Covers legal liabilities for third-party bodily injury or property damage caused by construction activities.
  • Allows each insured party to be treated as a separate entity.
  • Policies can be extended to include additional coverages.
  • Covers temporary buildings and structures.
  • Covers damage or loss during the testing and commissioning phase of the project.
  • Extends coverage to include the maintenance period after project completion.
  • Offers coverage for projects that involve multiple sites or phases.
  • Can include coverage for projects that involve international aspects.
  • Policies can be customized in terms of duration and scope to match the specific timeline and requirements of the project.
  • Offers various deductible and limit options.

FAQs on Contractors All Risk Insurance UAE

Premiums for construction all risk insurance are determined based on factors such as project duration, contractor's experience and claims history, type of construction, risk management practices, location, project value, and scope of coverage. These factors help us assess the level of risk and set a suitable premium.

To apply for construction all risk insurance, you need a completed proposal form, details of subcontractors, relevant licenses and permits, detailed project description, site plans, project cost estimates, recent financial statements, project timeline, risk assessment report, and previous insurance claims history.

Yes, construction all risk insurance policies can be tailored to meet the specific requirements and risks of your construction project. Policy limits, additional extensions, coverage options, and deductibles can be tailored to ensure adequate protection for unique project requirements.

Yes, CAR Insurance includes coverage for third-party liabilities, which covers legal liabilities for bodily injury or property damage to third parties caused by construction activities, safeguarding contractors from potential lawsuits and claims.

Yes, CAR Insurance can extend to include maintenance period coverage, safeguarding against defects and damages that may arise during the maintenance period after the project is completed.

In the event of a claim, you should notify us and provide detailed information about the incident. We will then assess the claim and, if valid, will provide compensation according to the terms of the policy. It's crucial to keep documentation and records to support your claim.

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