Normally the contract in between the principal and the contractor may require the contractor to take out a policy of insurance to protect the contract work from unforeseen contingencies. The policy aims at covering the entire contract work including construction, materials. plants, equipment’s, machinery’s etc. at site during the contract period and maintenance period.
Direct risk covered under Contractor’s All Risk Insurance:
Fire, Burglary & Theft, Storm, Flood, Cyclone, Earthquake, subsidence collapse , Accidental damage.