Construction sites are full of uncertainties, and if you own a construction site, you will surely agree to it. Whether it is the risk of material damage, faulty design or an accident causing injury or loss of property- a simple unexpected event can delay projects and lead to huge financial consequences. In such a situation, protecting your projects from unexpected damage is not a matter of choice- it is a must.
A Contractors All Risk Policy (commonly referred to as CAR insurance) acts as a financial safeguard for builders, contractors, infrastructure businesses, EPC firms, and engineers undertaking construction activities. It not only safeguards the materials but also the project related liabilities and thus, ensures project continuity during crises.
This blog is a detailed guide on the coverage scope of a Contractors All Risk Policy, its necessity, claims process and how top insurance brokers and insurance providers in India can help you get the right insurance policy for your project.
Contractors All Risk Policy: In A Nutshell
A Contractors All Risk Policy is a comprehensive construction risk insurance plan which protects the insured against the risk of physical damage to contract works as well as third party liabilities at project sites. Irrespective of whether it is a building project, bridge construction, factory expansion, or power plant installation, CAR insurance stands by and protects businesses against major financial losses.
It protects during loss events such as:
- Fire, explosions, or electrical accidents
- Theft of construction materials or machinery damage
- Natural disasters like floods, cyclones, earthquakes
- Accidental damages caused by errors or structural collapse
A single contract work accident can lead to crores in losses — but with CAR insurance, your business stays financially protected.
Who Should Buy a Contractors All Risk Policy?
Any business involved in physical construction or installation activities must buy CAR insurance to safeguard ongoing projects. This includes:
- Civil contractors
- Infrastructure developers
- Engineering firms
- Builders and real estate companies
- Industrial project owners
- EPC and turnkey contractors
Whether you are dealing with residential, commercial, industrial, or Government projects – the construction work is still vulnerable to changing risks every day.
What Does a Contractors All Risk Insurance Policy Cover?
This powerful insurance policy typically covers:
- Material Damage
Provides financial protection for accidental loss or physical damage to project works, construction materials, temporary sheds, scaffolding, and construction plant and machinery. - Third-Party Liability
Covers expenses incurred against legal liabilities resulting from accidental bodily injury and property damage to third parties, caused by construction activities. - Transit Damage Cover
Includes coverage for materials transported to the construction site.
Moreover, you can choose certain add-ons to enhance protection. These may include( but are not limited to):
- Surrounding property coverage
- Debris removal expenses
- Cross liability extension
- Maintenance period cover
What Is Not Covered?
Some exclusions apply such as:
- Normal wear and tear or gradual deterioration
- Defects due to lack of maintenance
- Wilful negligence or deliberate acts
- Penalties related to project delays
- Consequential financial losses outside stated coverage
Understanding these helps contractors comply with policy terms and ensure claim success.
How Premiums Are Calculated in CAR Insurance
Premiums vary depending on:
- Total project value and duration
- Type of construction (risk category)
- Location and soil/geographical risk
- Safety measures available on site
- Machinery and high-risk equipment used
- Contractor experience and loss history
High-value industrial and infrastructure projects often require extensive risk evaluation by an insurance provider.
Best Insurance Brokers in India To Buy Contractors All Risk Policy
Navigating complex construction risks requires expert guidance. The right insurance brokers evaluate site exposure, project complexity, and insurer suitability to secure the most comprehensive coverage at a justified price.
- BimaKavach
BimaKavach specializes in commercial and construction sector insurance. Their strong expertise in Contractors All Risk Policy makes them the go-to advisor for contractors across India — from SMEs to large enterprise infrastructure builders.
Why contractors prefer BimaKavach:
- Project-specific risk assessment and coverage planning
- Access to competitive quotes from leading insurers in India
- Full-grade support during inspections, documentation, and claims
- Quick and professional guidance throughout the project lifecycle
With BimaKavach, businesses ensure their construction journey remains secure and uninterrupted.
- SecureNow
SecureNow provides digital access to multiple construction insurance solutions and simplifies the process with technology-driven support.
Key advantages:
- Efficient quote comparison and onboarding
- Good claim documentation assistance
- Advisory support for site compliance and safety audits
- Focused offerings for medium to large-scale contractors
- PlanCover
PlanCover offers cost-effective solutions for small and mid-scale construction firms. They guide project owners through insurance complexities and connect them with reputed insurers.
Why consider PlanCover:
- Quick response with suitable policy options
- Tailored pricing for small civil projects
- Assistance with policy documentation
- Risk guidance to minimize claim disputes
Top 3 Insurers in India Providing Contractors All Risk Policy
The right insurers ensure smooth claim settlement, underwriting expertise, and flexible coverage to match project demands.
- TATA AIG General Insurance
TATA AIG delivers robust CAR insurance coverage for large infrastructure projects and commercial buildings. Their risk-engineering knowledge helps contractors reduce on-site hazards and maintain project continuity.
- ICICI Lombard General Insurance
Known for strong technical underwriting, ICICI Lombard delivers comprehensive protection suitable for industrial, real estate, and EPC construction projects with seamless claim support.
- Bajaj Allianz General Insurance
Bajaj Allianz offers customized CAR insurance plans that are equipped with strong support capabilities for complex, high value engineering and civil contracts/ projects.
Why Construction Businesses Cannot Afford to Ignore CAR Insurance
A single accident can be enough to halt your project, harm your reputation, and bring about huge financial liabilities. In the absence of proper insurance, contractors may end up bearing losses that can entirely erase their profits or can even collapse the business entirely.
Conversely, a Contractors All Risk Policy gives you the power to carry on with your work confidently and still be able to withstand uncertain situations.
Final Thoughts
The construction industry is a high-stake one. However, that does not mean you have to shoulder the burden of all the financial risks yourself. CAR insurance is a tool for safeguarding the work in progress, materials, and third party liabilities. At the same time, it will also help your business fulfill regulatory and contractual obligations.
It is highly imperative that you partner with reliable insurance brokers like BimaKavach. They will make sure you are investing in the right insurance policy from reputable insurers and supported by end-to-end claim assistance, when you need it the most.
Do remember, your project deserves round-the-clock protection that works as hard as you do. With expert guidance, attractive premiums, and seamless claim support, BimaKavach is there to ensure that you never have to bear construction risks alone.
Go ahead and start your project with the assurance that everything is under control. Secure your future with the right CAR Insurance coverage today.
