Contractors’ All Risks Insurance

Contractors’ All Risks (CAR) Insurance offers comprehensive protection in respect of the contract works, construction plant and equipment and/or construction machinery against unforeseen and sudden physical loss or damage arising from a lack of skill, carelessness, malicious damage, storm and flood, theft, fire, lightning and explosion, earthquake and landslide and other perils from acts of nature.

Insured risks may include buildings of all types, e.g. low-rise houses, apartment tower blocks (residential or commercial), schools, factory buildings, bridges, highways and civil works. The coverage also extends to include third party claims in respect of property damage or bodily injury arising in connection with the execution of a building or civil engineering project.

A CAR policy may be effected by the principal and/or the contractors engaged in a project, including all subcontractors if necessary.

Preliminary Information Required

  • Insured Name*
  • Insured Business
  • Contract Site
  • Period of Construction/Erection
  • Scope of Works
  • Total Contract Value

Erection All Risks Insurance

Erection All Risks Insurance (EAR) offers extensive protection against unforeseen and sudden physical loss or damage arising from a lack of skill, carelessness, malicious damage, storm and flood, theft, fire, lightning and explosion, earthquake and landslide and other perils from acts of nature and that occurs during erection, testing and commissioning of machinery. The coverage extends to include third party claims in respect of property damage or bodily injury arising in connection with the execution of an erection project.

The Insured under an EAR policy is normally:

  • The manufacturer or supplier of machinery or plant, if he carries out the erection work or is responsible for it, or
  • The firm commissioned with erection work, or
  • The purchaser of the machinery or plant to be erected.

Preliminary Information Required

  • Insured Name
  • Insured Business
  • Erection Site
  • Period of Erection
  • Scope of Works
  • Total Erection Value

Advanced Loss of Profits Insurance

Advanced Loss of Profits Insurance (ALOP) will indemnify the Insured in respect of the actual loss sustained as a result of a delay beyond the Scheduled Business Commencement Date of or interference with the business, hereinafter referred to as the Delay, provided that, the Delay is the result of one or more interruption(s) or interference(s) in the construction and/or testing programme caused by loss or damage indemnifiable under Contractors’ All Risks Insurance.

The indemnity could be in terms of loss of gross profits or cost of servicing loans and/or debts and/or specified standing charges and/or increased cost of working (incurred to minimize a claim) as a result of any occurrence, loss or damage to any items insured in Contractors’ All Risks Insurance and which is the subject of an indemnifiable claim, and results in a Delay in start up to the project.

Preliminary Information Required

  • Insured Name
  • Insured Business
  • Contract Site
  • Period of Construction/Erection
  • Scheduled Business Commencement Date
  • Basis to be Insured (Gross Profits/Specified Standing Charges)
  • Sum Insured
  • Indemnity Period* (No. of months)

*The period during which the results of the business are affected in consequence of the accident. This is the period in respect of which losses are indemnified under this policy.

Contractors’ Plant & Machinery Insurance

Contractors’ Plant & Machinery Insurance covers loss or damage to the contractor’s plant, such as building machinery, forklift trucks and mobile cranes, against fire, lightning, explosion, theft, collision, overturning and impact damage resulting from a breakdown and road risks.

Preliminary Information Required

  • Insured Name
  • Insured Business
  • List of machinery with make, model and sum insured

Machinery Breakdown Insurance

Machinery Breakdown Insurance covers against unforeseen and sudden physical loss or damage caused by defects in casting and material, faulty design, bad workmanship, a lack of skill, carelessness whether by the Insured’s employees, shortage of water in boilers, physical explosion, short-circuit, storm, or collision.

The Insured items may involve mechanical plant, including engines, turbines, compressors, pumps, machine tools, power generators, transformers, boilers, cooling/heating generators, escalation, feed pumps switchboards, etc.

The coverage excludes wear and tear, fire, lightning, theft, flood, earthquake, nuclear risks, civil commotion, riot and strikes, willful acts or negligence of the Insured or his representatives and any consequential loss.

Preliminary Information Required

  • Insured Name
  • Insured Business
  • Insured Location
  • List of machinery with make/model and sum insured

Boiler & Pressure Vessel Explosion Insurance

The policy covers the cost of repairs to the boiler or other insured apparatus, together with resulting damage to auxiliaries and surrounding buildings, machinery and other property, arising from explosion, collapse or distortion by bending caused by steam or fluid pressure. The insurance also indemnifies the Insured against liability to the public for personal injuries and property damage arising out of the mishap.

The Insured items can include steam boilers, economizers, sterilizers, steam pressure vessels, digesters, and cylinders, including other vessels under steam or air pressure.

Preliminary Information Required

  • Insured Name
  • Insured Business
  • Insured Location
  • List of insured items with make/model and sum insured

Loss of Profits Insurance

When a key item of machinery/boiler in a factory breaks down or explodes, the owner is faced not only with an expensive repair but also continuous downtime while arranging for repairs or awaiting delivery of new/repaired parts (maybe from overseas). Such interruption is a cause for great concern to the owner, especially when the cash flow dries up, wages remain to be paid, and standing charges are not met. This is the situation which the Loss of Profits policy is designed to remedy.

Loss of Profits Insurance insures the loss of gross profit to the business following an accident to the machinery or boiler. This loss is measured by comparison of the turnover with the comparable position in the previous twelve months, after taking into account trends in the business and other relevant factors. Certain agreed non-continuing expenses, such as raw materials and packing costs are deducted. Adjustments are made for stocks and any savings in costs and expenses.

By reinstating the lost turnover, the Insured recovers his income, which will be used to pay the continuing expenses of his business and salaries/wages of staff, while also leaving a net profit. Full insurance of wages may not be required if, for instance, staff made idle by the stoppage are laid off. Alternative forms of coverage are available under a separate section of the policy.

Extra expense, incurred by the increased number of work hours required to save a loss of gross profit/wages, is covered by the policy.

Loss of Profits Insurance will be activated following an accident to the machinery or boiler as insured and covered by the companion Machinery Breakdown Insurance or Boiler & Pressure Vessel Explosion Insurance. Loss of Profits Insurance is not a stand-alone policy; it follows the procurement of Machinery Breakdown Insurance or Boiler & Pressure Vessel Explosion Insurance.

Preliminary Information Required

  • Insured Name
  • Insured Business
  • Insured Location
  • Estimated Amount of Gross Profits
  • Indemnity Period* (No. of months)

*The period during which the results of the business are affected in consequence of the accident. This is the period in respect of which losses are indemnified under this policy.

Electronic Equipment Insurance

Electronic Equipment Insurance (EEI) is an accident insurance on an ‘all risks’ basis which covers sudden and unforeseen loss or damage to electronic equipments, such as alarm and fire warning systems, data processing equipment, data recording equipment, telephone systems, sound and TV studio equipment, etc.

The following causes are covered under this insurance:

  • Fire, lightning, explosion, falling aircraft
  • Smoke, water and humidity
  • Short-circuit and other electrical causes
  • Design, manufacturing, assembly and erection faults, defects in casting and material, workshop, errors, bad workmanship
  • Faulty operation, lack of skill, negligence
  • Malicious acts of workmen, employees, third parties
  • Burglary
  • Subsidence and landslide

The loss or damage to external data media, including magnetic disc and tapes, diskettes and the information stored thereon, is protected in connection with an Electronic Equipment Insurance. Similarly, an increased cost of working as hire charges, transport charges for data media and personnel, expenses for accommodation away from base, night work or work on holidays and the like are also indemnified under this policy.

Preliminary Information Required

  • Insured Name
  • Insured Business
  • Insured Location
  • Sum Insured
  • Indemnity Period* (No. of months)

*The period during which the results of the business are affected in consequence of the accident. This is the period in respect of which losses are indemnified under this policy.

Contact

Our Service Team

+66 (0) 2661 6522

+66 (0) 7623 8211

Type of Insurance