CONTRACTORS ALL R1SKS& MACHINERY BREAKDOWN INSURANCE

This insurance provides cover for loss or damage to contract works as well as your liability to third parties arising from the contract/project during the construction period.

Contractors All Risk Insurance covers the full replacement value i.e. the cost of rebuilding the whole project. Principal supplied materials should be insured too. Very often the Principal will supply their own goods or materials e.g. the white wear provided in a house construction. These can be included in the insurance so long as their value has been declared in the sums insured.

Allowances which are required by contract also need to be insured - such as professional fees, removal of debris and increased costs. These are limited to either a percentage of the contract value such as 5% or a fixed amount.

The most common types of insurance required by construction contracts are:

Comprehensive cover is provided for all your equipment, plants and machinery in case of breakdown, loss or damage.

Machinery breakdown insurance is also referred to as equipment breakdown, mechanical breakdown or boiler and machinery insurance. The insurance is purchased by any industry or business that may experience an accidental breakdown of its machinery. The insurance typically reimburses policyholders for damage to property and, in some cases, interruption in business activities. For example, if a key piece of equipment at a manufacturing plant were to stop working and cause production to come to a standstill, the policy pays to repair the equipment as well as reimburse the business for any profits that would have been earned if the equipment was still operational.