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Understanding Contractor’s All Risk Insurance

With Typhoon Glenda hitting the Philippines hard, houses, livelihood and businesses were put to their knees. Not even the strongest of structures were spared. Fortunate are those who were able to insure their properties, giving them a greater opportunity to rise above the destruction “Glenda” caused, and of course protection for other possible typhoons or other natural calamities that may hit our country for the rest of the year.

Insurance do not only cover structures that are already built, there is also an insurance specifically designed to protect structures under construction. Contractor’s All Risk Insurance (CARI) provides a comprehensive and adequate protection against loss or damage to contract works, as well as, for the third party claims arising in connection with the completion of a construction project. This aids the contractor to deliver their agreement without fear of unfortunate events that may interfere with their construction, causing delay or financial losses.

CARI could be used in the construction of structures like office building, schools, residential buildings, manufacturing facilities and warehouses. Structures like roads, drainage or railway constructions may also be covered by this insurance product.

The CARI coverage includes Acts of Nature. It also covers the materials which will be used in the construction and will be incorporated into the building. CARI coverage also has Third Party Liability, insuring against any liability arising out of bodily injury or property damage suffered by third parties, occurring in connection with the contracts works at the project site.

With these great product feature, having Contractor’s All Risk Insurance will definitely help in providing contractors security and peace of mind.

—Timothy Bascar