Contractors' All Risk  
Contractors All Risks Insurance is usually sought by contractors for contract works for the construction of buildings, road, bridges etc.

Scope of Cover

  • Indemnifies insured party against loss/damage to insured property at work-site
  • Covers third party liability of insured

Insured Party/Parties

  • The Owner of Building/Project
  • Main Contractor
  • Sub-Contractor

Property Insured

  • All the works to be performed under the contract
  • Provisional Installations (Barracks, Warehouse, Site Offices etc)
  • Plant Machinery/Equipment
  • Removal of Debris
  • Professional Fees

Peril Covered

  • Natural - Fire, Lightning, Water Damage, Flood, Storm & Tempest Subsidence, Landslip, Cyclone, Hurricane, Earthquake, Volcano
  • Social - Burglary & Theft
  • Chemical - Explosion, Spontaneous Combustion, Heating, Fermentation
  • Miscellaneous - Impact & Aircraft Damage
  • Others - Accidental Damage Eg. Due to Faulty manipulation, Collapse, Collision, Consequences Of Defective Materials, Casting, Defective Workmanship


  • All excesses stated in schedule
  • Consequential loss
  • Wilful act/wilful negligence of any official of the insured
  • Corrosion (Consequences of it covered)
  • Non-Observance of trade rules
  • War risks
  • Faulty design


The main factors in determining the size of the deductible are :-
  • Excess which will influence the premium
  • Elimination off small claims


  • Riot & strike
  • Land Transit
  • Cross Liability
  • Extended Maintenance
  • Visit Maintenance


The premium is calculated at a rate applied to the sum insured (full replacement value) and is charged for the full period of the contract.

Minimum premium - RM250.00

Sum Insured

Section 1 Building and Civil Engineering Works
  • (a) Contract Works/Contract Price
  • (b) materials or Items Supplied By The Principal
  • Construction Equipment
  • Construction Machinery and Stationary Plant
  • Clearance of Debris
  • (Limit of Indemnity)