The construction all risks insurance, also known as the contractors all risks insurance is specially designed to give financial protection to civil engineering contractors in the event of an accident to the civil engineering works under construction.

The policy is divided in two sections:

1. The work, Material Damage – covering physical loss, damage or destruction of the property insured, by any cause, other than those specifically excluded in the policy.
2. The third party liability – covering the legal liability, falling on the insured contractor and subcontractors if declared, as a result of bodily injury or property damage, belonging to a third party.

The policy can be extended to cover the following:

• maintenance period
• coverage to surrounding property
• construction equipment like scaffolding materials
• separate storage location

The insured sum

The sum insured selected under section I should be represented by the total contract value, including the estimated cost of labor charges and cost of materials, but excluding profit.

The sum insured selected under section II should represent the per accident limit (maximum legal liability).

The policy can be taken by: the principal, contractor or subcontractor.