What does Contractors All Risks Insurance mean? Read on to discover the definition & meaning of the term Contractors All Risks Insurance - to help you better understand the language used in insurance policies.
Contractors All Risks Insurance
Written in connection with construction projects outside the United States, these nonstandard policies typically consist of three coverage parts. Part I is analogous to builders risk policies issued in connection with domestic construction projects. It provides coverage for damage to the project under construction and for materials and equipment that are destined for incorporation into the project, including items in storage and in transit to the site. Part II provides liability insurance for third-party bodily injury (BI) and property damage (PD) arising out of the construction operations. Part III is an optional coverage for losses arising out of a delay in start-up (DSU) due to an insured loss. This coverage is analogous to delayed opening/soft costs coverage available in conjunction with domestic builders risk policies. Covered parties include the project owner, general contractor, subcontractors, and in some cases suppliers of materials and equipment. In rare instances, the design professional may also be an insured.
We hope the you have a better understanding of the meaning of Contractors All Risks Insurance.