IndusInd Contractor’s All Risk Insurance

Construction projects involve a significant investment of time, money and effort from all parties involved. And every construction project comes with risks that can derail progress and increase costs, ranging from unexpected damage during execution to third-party liabilities on the site. For instance, if a sudden storm damages a partially completed structure or if nearby property is accidentally affected during excavation, the financial burden can be substantial.

IndusInd Contractor’s All Risk Insurance safeguards contractors, principals and project owners by providing comprehensive coverage against such unexpected losses during construction. These include damage caused to another person or property, damage due to natural disasters like floods, damage due to accidental fire and more.

This policy also ensures that material damage, accidental loss and legal liabilities are taken care of without draining company resources. We ensure that the coverage helps your project continue to run smoothly. So, whether you’re building infrastructure, commercial complexes or residential projects, our cover gives you the confidence to focus on timely execution while we protect your investment.

Why Choose Us?

IndusInd Contractor’s All Risk policy (previously known as Reliance Contractor’s All Risk policy) is designed to provide complete protection to project owners, contractors and infrastructure companies against a wide range of risks. Our plan's flexibility and affordability make us a reliable choice for businesses.

Customisable Coverage*

Plans for all unique needs

Competitive Premiums*

Maximise protection with our rates

24/7 Customer Support*

Accessible support all the time

Broad Range Coverage*

Covers various risks under one

Benefits of IndusInd Contractor’s All Risk Insurance

Compliance with Contractual Requirements

Construction contracts often mandate insurance coverage for workers and third-party risks under the Indian Contract Act, 1872. This policy ensures compliance by protecting construction material, equipment and temporary structures against fire, natural calamities or theft. Such comprehensive coverage prevents legal troubles and financial risks.

Built-in Third-Party Liability

Suppose a frame collapses at a site, injuring people passing by and damaging nearby vehicles. Under liability law, the contractor must offer compensation to the affected individuals. This policy steps in to cover medical costs, repairs and legal fees, protecting you from high expenses and ensuring you meet your obligations under law and contract.

Customisable Add-Ons

Picture a bridge construction project where heavy machinery accidentally damages underground utilities, escalating costs. With us, you can add covers for such unforeseen risks, including debris removal or surrounding property damage. This ensures the project stays on track while meeting insurance requirements set by clients.

Coverage Enhancements Built-In

During a dam project, flash floods can destroy parts of the completed structure. Thanks to the automatic reinstatement feature, the insurance cover is restored to the full Sum Insured even after the claim. This means the contractor continues to have uninterrupted protection for the remaining project period by paying an additional premium.

Affordable Premiums

Consider a township development project spanning two years. Instead of paying the full premium upfront, we allow payments made in instalments if the policy tenure is more than 12 months. This flexibility enables contractors to manage tight cash flows while remaining insured throughout the project. It also helps meet client insurance requirements without adding heavy costs at the start of the project.

End-to-End Project Protection

Consider a power plant project where turbines are imported, stored and then installed. If damage occurs during transit, storage, or construction, the policy covers it all until final handover. This ensures every stage of the project is legally insured, avoiding disputes with financiers or clients.

Who Needs Contractor’s All Risk Insurance?

Those engaged in road, bridge, flyover or township construction where contracts mandate insurance to safeguard against project delays and material losses.

Builders of residential or commercial complexes who need protection against structural damage during construction and liability towards third parties.

Firms handling metro rails, airports, power plants or dams that involve high-value contracts and require insurance compliance for financing.

Electrical, plumbing, HVAC or finishing contractors whose work can be disrupted or held liable if damage occurs during ongoing construction.

IndusInd Contractor’s All Risk Policy Inclusions and Exclusions

What is Covered

Damage Cover: Loss or damage to contract works, temporary works and site materials during construction.

Cover for Property: Loss or damage to construction plant, equipment, and machinery (excluding breakdown).

Accidental Damage: Accidental loss or damage to surrounding property (if declared in the policy schedule).

Injuries to People: Accidental bodily injury to third parties due to construction activities.

Third-Party Property: Accidental damage to third-party property caused during project execution.

Loss due to Various Risks: Sudden, unforeseen losses caused by fire, flood, storm, earthquake and other natural perils (unless excluded).

What is Not Covered

Wear and Tear: Normal wear and tear, corrosion, or gradual deterioration.

Machine Breakdowns: Mechanical or electrical breakdown of plant or machinery.

Manual Defects: Defective design, material or workmanship unless it results in accidental damage.

Employee Liabilities: Injury to employees or workmen (covered separately under WC/ESI).

Negligence, War/Wilful Damage: Damage to property in your custody or control or damage due to war and consequential losses.

Disclaimer: For a detailed list of inclusions and exclusions, refer to the policy documents.

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Contractor’s All Risk Insurance – Add-Ons

When we say we offer complete protection - we mean it! Along with standard coverage, you also get access to a wide range of add-ons that enhance your coverage and help you customise it for your business needs.

Debris Removal Cover

Best Seller

Covers the cost of clearing debris after an accident or damage at the construction site. Helps you get the site back in order quickly without extra financial strain.

Owner’s Surrounding Property Cover

Best Seller

Protects property around the construction site owned by the project owner, such as walls, fences or landscaping, if they get damaged during construction work.

Maintenance Visit Cover

Best Seller

Provides coverage for minor repairs or losses that happen during maintenance visits after the main construction is complete. This add-on ensures that the project handover is smooth.

Extended Maintenance Cover

Best Seller

Provides protection against defects or accidental damage that occur during the agreed-upon period. This gives extra coverage that is beyond the initial construction.

Escalation Cost Cover

Best Seller

Covers cost increases due to sudden rises in material prices or wages, helping you manage budget surprises during long-term projects.

Express Freight Cover

Best Seller

Covers the extra cost of quickly transporting replacement materials or equipment to the site after an insured loss, minimising project delays.

Design Defect Cover

Best Seller

Protects against accidental losses caused by minor design flaws. This add-on helps avoid costly rework and ensures continuity of the project.

Factors Influencing Insurance Premium Prices

Project Cost

The overall value of the construction project directly impacts the premium. Higher project costs = higher premiums due to increased exposure and potential liabilities.

Type of Work

The nature of the construction activities, such as residential, commercial or industrial, affects the risk profile. Complex or specialised work may attract higher premiums due to increased risk.

Project Duration

Longer project duration means longer exposure to risks, potentially leading to higher premiums. Extended periods may also involve more complex risk assessments.

Site Location

The geographical location of the construction site plays a crucial role. If the area is prone to natural calamities, such as floods or cyclones, insurance premiums will be higher due to increased risk exposure.

Risk Profile of the Project

Projects involving hazardous activities or materials may have higher premiums due to the increased likelihood of accidents or damage.

Selected Add-On Covers

Opting for additional coverage options, such as third-party liability or extended maintenance, can increase the premium but provides enhanced protection.

How to Buy Contractor’s All Risk Insurance?

Provide Details

Enter the type of construction, total project cost and site location.

Select Coverage

Choose the base CAR along with optional add-ons like debris removal.

Review Your Quote

Check the premiums and coverage limits to ensure they meet your needs.

Get Policy

Make the payment online and receive your policy instantly via email.

How to Claim IndusInd Contractor’s All Risk Policy?

Claim Process

Notify Us Immediately

Report any incident or damage promptly via helpline, WhatsApp, email, or the IndusInd Self-i app.

Submit Documents

Provide the completed claim form along with supporting documents, such as photos of the damage, surveyor reports or invoices for affected materials/equipment.

Claim Review & Verification

Our team will review the submitted documents, and a surveyor may visit the site to verify the incident, damage and liability.

Settlement Process

Once approved, the settlement amount is transferred to your designated bank account according to policy terms.

Disclaimer: The list of documents required for a successful claim process varies depending on the claim type. Check your policy document or contact us for the complete list for your unique case.

Key Takeaways

Construction projects involve significant investments in materials, equipment and labour. In 2024, India’s construction sector accounted for over 7% of the country's GDP, which also highlights the increasing risk of workplace incidents.

IndusInd Contractor’s All Risk Policy protects your project by covering accidental damage to contract works, construction equipment and third-party liabilities. For example, suppose a crane slips and damages nearby property. In such a case, our policy covers repairs and compensation, protecting both finances and business reputation. We also offer a wide range of add-ons, such as debris removal or maintenance cover. So, you can customise the policy to the specific needs of your project.

Beyond financial protection, this insurance ensures compliance with contractual and legal obligations and strengthens client trust. With quick online policy issuance and dedicated claims support, you can focus on completing your project on time, knowing that business liabilities are managed efficiently. Whether you run a small civil contracting business or handle large infrastructure projects, IndusInd General Insurance provides end-to-end coverage, keeping both your workforce and your project secure.

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IndusInd General Insurance

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IndusInd General Insurance is one of the leading general insurance companies in India. The Company offers a well-rounded and comprehensive bouquet of products including Motor Insurance, Health Insurance, and Travel Insurance, and offers customised solutions to meet the protection needs of each customer.

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Frequently Asked Questions (FAQs)

What is Erection All Risk Insurance?

During the project phase, activities like installation of machinery, plant or equipment, storage, reconstruction, movement, or expansion of machinery involve significant risks. Even minor damage to a component can cause heavy financial losses. The Erection All Risks (EAR) / Storage-cum-Erection Insurance Policy provides coverage against physical loss or damage during erection of machinery, plants, equipment, and associated civil works. It also covers third-party liability for bodily injury or property damage arising out of insured project activities.

Who Should Buy EAR Insurance?

EAR insurance is generally taken by those directly involved in erection and installation activities, such as: Contractors and Sub-contractors, Project Principals or Owners, Purchasers and Suppliers of equipment, Manufacturers of equipment, Turnkey Contractors.

What is Covered under an EAR Policy?

The policy covers a wide range of erection and installation projects from a single machine to large industrial units. It protects businesses against: Physical loss or damage caused by risks such as fire, lightning, and natural calamities; Third-party legal liability claims due to bodily injury or property damage.

Who Can Be Insured under EAR?

Contractors, Sub-contractors, Principals of the project. The policy is issued to cover the entire erection process at a site for the defined project duration.

What is the type of Erection All Risk Policy?

Types of EAR Policies: Policy for projects up to ₹100 Crores, Policy for projects above ₹100 Crores.

What are the add on coverage available in EAR Policy?

A wide range of add-ons are available under erection all risk policy. Some of the key add on cover is as follows: Owner’s Surrounding Property (with or without FLEXA coverage), 50/50 Clause, 72 Hours Clause, Automatic Reinstatement Clause, Loss Minimization Expenses, Debris Removal, Professional Fees, Cover for Offsite Storage / Fabrication Premises, Third-Party Liability (with or without Cross Liability), Waiver of Contribution Clause, Waiver of Subrogation Clause, Escalation Costs, Expediting Costs (including Air Freight and Express Freight), Maintenance Cover (Extended or Limited), Design Defect Cover, Additional Customs Duty, Cover for Valuable Documents. (Disclaimer: For the complete list of add-ons, please refer to the policy wording.)

What is the duration of cover for EAR?

The cover commences from the date of arrival of first consignment at project site. Cover terminates on the date of expiry as per policy or on completion of final test whichever is earlier. In the event of non completion of the project within the period as per the policy, Policy may be extended for such further times as confirmed by insured.

What is not covered under EAR policy?

Common exclusions under an EAR policy include: Willful negligence, Partial or complete stoppage of work, Faulty design and consequential losses, Damage due to war, terrorism, or radiation contamination, Injury to own workmen (covered under separate Workmen’s Compensation policies). (Disclaimer: For the complete list of exclusions, please refer to the policy wording.)

How is the premium computed for Erection All Risk insurance?

Premium depends on several factors, including: Type of project, Project duration, Sum insured, Risk location, Scope of add-on covers.