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Contractor All Risk
What is Contractor’s All Risk Policy?
During the course of execution of project relating to construction of building and civil engineering works, certain unforeseen accidents could occur resulting in considerable financial loss to the contract works, construction / or the principals arising from damage to the contract works, construction of plant and machinery as well as Third Party Claims. The Contractors All Risks (CAR) Insurance has been designed to protect the interests of the Contractors /Principal against such losses.
Why eSanad?
One of the leading General Insurance Company with following strengths:
Why Do You Need It?
Contractors All Risk is a comprehensive insurance cover to the client for any contingency from the moment the material is unloaded at the site of the project and continues during storage, physical construction/erection and till the test run is over and during maintenance, if covered.
eSanad Contractor’s All Risk Articles
How to secure your construction projects with contractors all risk insurance?
10 Fab 2025
Contractors All Risk (CAR) insurance provides essential protection for construction and infrastructure projects against material theft and accidental damage. Contractors, builders, and developers face risks such as theft, weather-related damage, and machinery accidents. CAR insurance offers comprehensive coverage, ensuring projects stay on track financially despite unforeseen incidents, safeguarding investments and providing peace of mind.
Benefits of Contractors' All-Risk Insurance Policy
18 Jul 2025
According to the Construction Industry Development Council, around 32 million people are involved in the booming and thriving construction sector in India, which is worth Rs 2,48,000 crores. However, managing projects comes with inherent risks, from third-party liability lawsuits to unforeseen events and material damage due to natural disasters. These events are stressful, delay projects, and cost a significant part of your budget.
What is Contractor’s All Risk Insurance?
20 Apr 2022
During the tenure of execution of civil engineering projects, including the construction of residential and non-residential properties, like bridges, hospitals, schools, etc. unforeseen accidents may arise, which could result in disastrous financial loss to the construction company and other parties involved. Apart from the property damage due to inferior construction or materials, an injury may be caused to a third party, resulting in claims or lawsuits.
What is covered by eSanad Contractor’s All Risk Policy?
Below are the detailed inclusions and exclusions of Contractor’s All Risk Policy
Inclusions
Location Risks: Fire, Lighting, Theft, Burglary & Housebreaking
Testing and Commissioning Risks*: Failure of Safety Devices, Leakage of Electricity, Insulation failure, Short circuit, explosion
Act of God: Storm, Tempest, Hurricane, Flood, Inundation, Subsidence, Landslide, Rockslide, earthquake.
Handling Risks: Impact from falling objects, Collision, Failure of Cranes or Tackles etc.
Risk of Human Element: Carelessness, Negligence, Faults in Erection/Construction, Strike & Riot, Malicious damage, Terrorism
Testing Perils: Maximum value at risk. A specific request to be made to UW
Exclusions
War & Allied Perils
Wilful act or wilful negligence of Insured/ his representatives.
Excess in respect of each claim as stated in the policy
Normal wear and tear, gradual deterioration, lack of use, obsolescence, rust, etc.
Any damages/ penalties on account of the Insured of the terms of delivery/ completion under his contract of construction.
Nuclear & Allied Perils.
Cessation of work
Losses discovered only at the time of taking an inventory
Loss/ damage due to faulty design, defective material or casting other than faults in erection.
Consequential loss/ liability of any kind.
Why Choose eSanad?
Your CPM policy premium depends on
At eSanad, we don’t just sell insurance. We protect your ability to build.
We know every construction site holds jobs, futures, reputations — and dreams. When equipment fails, it’s not just a repair it’s a ripple effect. That’s why we act fast, support fully, and ensure you’re back up and running with minimal disruption.
You deserve more than paperwork. You deserve a partner that understands your pressure and protects your progress.
Frequently Asked Questions
It covers physical loss or damage to construction works, materials, equipment, and machinery, along with third-party liability for injury or property damage caused during construction.
Covered risks include fire, theft, vandalism, natural disasters, accidental damage, collapse, and site accidents during the construction period.
Material damage coverage includes protection for the construction site, building structure, raw materials, temporary works, and contractor’s plant and machinery against unforeseen damage.
Third-party liability covers legal costs and compensation for injury, death, or property damage caused to third parties due to construction activities.
Common exclusions include wear and tear, faulty design, defective materials, intentional damage, war risks, and mechanical breakdown unless specifically covered.
Contractors, builders, developers, subcontractors, project owners, and construction companies involved in civil engineering or building projects should purchase CAR insurance.
It is not legally mandatory, but it is often required by project contracts, developers, or government authorities for construction projects.
Coverage usually begins when construction work starts or materials are delivered to the site and ends when the project is completed and handed over.
Yes. It covers contractor’s plant, machinery, tools, and equipment used at the construction site against accidental damage or loss.
Yes. Policies can be customized with add-ons such as delay in start-up, debris removal, surrounding property cover, and natural disaster extensions.
Premium depends on project value, type of construction, duration, location, risk exposure, and past claims history.
Notify the insurer immediately, provide incident details, submit supporting documents such as reports and invoices, and cooperate with surveyors during the claim process.
CAR insurance is specifically designed for construction projects and covers risks during construction, while property insurance covers completed buildings and assets.