1. What is insured by Construction All Risks policy?
Standard CAR insurance policy consists of three parts:
Section 1. Material Damage
Losses incurred by the Insured during construction and erection works, including damage caused to contractual works, materials, equipment. Additionally, coverage for construction machinery, scaffolding, property in transit and stored in warehouses may be provided additionally.
Section 2. Third Party Liability
Coverage for Insured’s liability to the third parties for bodily injury or damage caused to property owned by third party affected in course of construction and erection works. However, it should be noted that neither Insured’s nor Contractor’s employees working at the site are considered to be third parties.
Additionally, Advance Loss of Profit and Delay in Start Up insurance covers may be included to the coverage.
Section 3. Advance Loss of Profit and Delay in Start Up insurance covers
Coverage for losses, incurred due to Advance Loss of Profit or Delay in Start Up resulting from occurrence of the insured perils. Loss is calculated as the amount of Principal’s gross profit which would have been earned during the period of operation of the construction project had such delay not occurred.
2. Who can be the Insured in the policy?
- Principal
- Main Contractor
- Contractors / subcontractors
Other parties, authorized under Russian law to operate construction/erection works and face risks of accidental loss of or damage to construction machinery, equipment, materials or other property used in construction and erection works.