Contractors’ All Risk Erection All Risk
What is Contractor's Comprehensive Insurance?
- Some examples of projects that can be insured with the contractor insurance includes
- Housing, shopping mall and shopping center, and construction of factory and warehouse
- Construction of airport, harbour, bridge and public infrastructure
- Construction of projects related to urban development such as power plant, water purification factories and telecommunication
- Construction of educational and health facilities such as schools, universities, colleges, and hospitals
What is a Erection All Risks Insurance?
- Some examples of projects that can be insured with installation insurance are:
- Installation of electrical and mechanical equipment
- Installation of telecommunication tower
- Installation of solar panels and wind turbines for wind power
- Installation of turbines for power plant
What are the major risks covered?
Key Covers (Applicable to both CAR/EAR insurance policies)
Section-I: Material damage
Fire, Lightning, Explosion . Aircraft Damage, Impact Damage, Theft , Windstorm, Hurricane, Cyclone, Typhoon, Flood, Earthquakes, etc.
Section-II: Liability
The responsibility to compensate by law due to the damage to the limbs of others and the damage to the property of others
Section-I: Material damage
Fire, Lightning, Explosion . Aircraft Damage, Impact Damage, Theft , Windstorm, Hurricane, Cyclone, Typhoon, Flood, Earthquakes, etc.
Section-II: Liability
The responsibility to compensate by law due to the damage to the limbs of others and the damage to the property of others
Who can be insured?
Insured persons include those related to the business owner according to business requirements. They are –
- Principal owner
- Main contractor
- Subcontractor
- Consultant engineer
How is the insured value calculated in CAR and EAR?
The insurance value is calculated on the contract value of the participating businesses until the completion of the work.
- Cost of goods or suppliers’ materials (cost of materials); taxes, customs duties, insurance costs, construction costs such as transportation costs
- Construction/Construction Cost (Labor Cost)
- Other expenses (commission)
- Business service equipment provided by the employer
What types of businesses should purchase EAR?
Installation/construction of various equipment, Construction of factories/workshops, Installation and construction of bridges and steel towers that have a high potential for risk
What businesses should purchase CAR?
Office building, factory, shopping center, residential housing , motorway, railway, harbour, tunnel, spillway, dam the construction of airports and underground shopping centers to protect against losses due to risks that may occur.
