Contractors All Risks Insurance

Construction industry is moving at a rapid pace in the Maldives.  If you are involved in such projects, you are probably expected to be responsible for all the works till the projects are completed and handed over to the owner.

However unforeseen events, such as floods or earthquake may cause severe damage to the construction, making you liable for the additional expenses incurred for example, labour costs. You may even have to bear the liability for the damages caused to machinery and the equipment at the construction site.

This is when Contactors All Risk Insurance will help you to overcome the financial loss.

Contractors All Risk Insurance Policy indemnifies the insured for the loss or damage to property while under construction during the construction period.

This policy provides protection to the insured for construction projects such as the construction of residential buildings, commercial buildings, resorts projects and other similar projects.

There are two sections of this policy. They are

  • Material damage section
  • Public liability section (Liability to third parties)


Material Damage

The primary items insured under this section are as follows:

  • Contract work including materials and price
  • Construction equipment, plant and machinery
  • Clearance of debris

Special Risk

The project has to be specially insured for natural disasters. Special Risk will cover the property under construction against natural disasters like earthquake, floods, inundation windstorm and tsunami.

Main Exclusions

 The main exceptions under Material damage insurance are:

  • War, warlike operations, mutiny, military or usurped power, confiscation, or requisition or destruction under the order of any Government or public authority
  • Defective workmanship or defective materials
  • Loss or damage due to faulty design
  • Wear and tear or gradual deterioration
  • Deductible
  • Deeds, bonds, bills of exchange, promissory notes, cash, bank notes, cheques, securities for money or stamps.
  • Consequential loss and penalties for delay.


Liability to third party cover

The insured is indemnified against all sums for which he is legally liable to pay as damages for accidental death or bodily injury to third parties, or accidental damage to third party property arising out of performance of contract.

Main Exclusions

The main exceptions under Third Party Liability Section are:

  • Loss of damage to any property land or buildings caused by vibration or the removal or weakening of support of such property land or buildings
  • Any liability which attaches by virtue of an agreement but which would not have attached in the absence of such agreement
  • Liability for bodily injury to any person under a contract of service or apprenticeship with the Insured arising out of and in the course of the employment of such person by the Insured


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