Project Insurance
What is Project Insurance?
Project Insurance, technically known as Construction All Risks (CAR) or Erection All Risks (EAR)
Insurance, is a comprehensive protection plan designed to safeguard construction and infrastructure
projects from inception to completion. It addresses the unique and high-intensity risks of the
construction site, covering physical damage to works, materials, and temporary structures, as well as
third-party liabilities arising from site activities.
Whether you're developing a high-rise residential complex, a multi-lane highway, or a large-scale power
plant, DigiAssure provides the financial security needed to manage unforeseen accidents, natural perils,
and legal challenges. Our plans are engineered to satisfy the stringent requirements of lenders and
stakeholders, ensuring that even if a major disaster strikes, your project has the resources to restart,
rebuild, and reach the finish line on time and within budget.
The Foundation of Project Security
1. Contract Works Protection
Covers the entire project value, including the permanent structure under construction, materials on-site, and temporary works against fire, flood, and theft.
2. Third-Party Liability
Shields developers and contractors from legal claims arising from accidental injury to the public or damage to neighboring properties during construction.
3. Plant & Machinery Cover
Provides comprehensive protection for expensive construction equipment like cranes, excavators, and mixers while they are deployed on the project site.
4. Delay in Start Up (DSU)
Provides financial compensation for the loss of expected revenue or fixed costs if the project completion is delayed due to a covered physical damage incident.
Key Features of Our Plans
All-Risk Framework
Everything is covered unless specifically excluded, providing the broadest possible protection for unpredictable construction environments.
Off-Site Storage
Extension of cover for project materials and equipment while they are stored in transit or at temporary off-site warehouses.
Maintenance Period
Covers damage occurring during the 12-24 month maintenance or defects liability period after the project is physically completed.
Surrounding Property
Protection for the owner's existing property that is not part of the contract works but could be damaged by the new construction.
Professional Fees
Covers the costs of architects, surveyors, and consulting engineers required to plan and supervise repairs after a major accident.
Removal of Debris
Provides funds for the significant cost of clearing rubble and debris from the site after a major loss, allowing work to resume.
Project Insurance vs Standard Property
Why standard fire insurance is insufficient for a dynamic construction site.
| Feature | Construction All Risks (CAR) | Standard Property Policy |
|---|---|---|
| Asset State | Dynamic (Under Construction) | Static (Completed Building) |
| Coverage Basis | All Risks | Named Perils Only |
| Third-Party Liability | Core Benefit | Excluded (Rider needed) |
| Site Materials | Fully Covered | Not Covered |
| Maintenance Period | Included | Not Covered |
| Project Plant | Included in Site Limits | Excluded |
| Lender Approval | Mandatory Standard | Rarely Accepted |
Coverage Details
Understand the boundaries of your construction safety net.
What is Covered
Typical site risks included in the plan:
- Fire, Lightning & Explosion
- Natural Perils (Flood, Earthquake)
- Burglary & Theft of Site Materials
- Accidental damage to Contract Works
- Third-party Bodily Injury/Death
- Damage to Neighboring structures
Standard Exclusions
Typical policy exclusions:
- Faulty Design / Error in Design
- Penalties for delay or Non-performance
- Wear & Tear of Site Machinery
- Willful negligence of Safety norms
- War, Invasion & Nuclear risks
- Inventory shortage during site audits
Valuable Project Add-Ons
Customized extensions for complex infrastructure risks.
Terrorism Cover
Critical for high-profile projects in urban areas, this covers both structural damage and delays resulting from acts of terrorism.
Escalation Clause
Automatically increases the sum insured of your contract works (up to 25%) throughout the project duration to account for inflation in material and labor costs.
Cross Liability
Allows one insured party (e.g., the owner) to sue another insured party (e.g., the contractor) under the same policy for accidental damage or injury.
Air Freight
Covers the extra cost of air-freighting replacement materials or equipment to the site to minimize delays after a major loss incident.
Factors Affecting Your Premium
How we determine the best value for your project risk.
1. Total Project Value
The total contract value (including materials and labor) is the primary driver for the premium calculation.
2. Project Nature & Type
Infrastructure projects like bridges or tunnels have higher risk profiles compared to standard residential buildings.
3. Duration of Construction
Longer project timelines increase the cumulative exposure to weather events and accidental damage, impacting the premium.
4. Site Location & Soil Conditions
Proximity to water bodies, high-seismic zones, or unstable soil conditions will be factored into the risk assessment.
5. Contractor's Track Record
A history of successful, safe project completions by the main contractor can earn significant premium discounts.
Documents Required
A streamlined list for large-scale project onboarding.
Contract Documents
- Letter of Intent (LOI) / Work Order
- Detailed Bill of Quantities (BOQ)
- Copy of the Construction Agreement
- Lender Insurance Requirements (if any)
Site & Technical
- Approved Building Plan / Site Layout
- Soil Investigation (Geotechnical) Report
- Topographical Survey details
- Site Security Plan
Project Timeline
- Project Gantt Chart / Implementation Schedule
- Expected Handover Date
- Details of Maintenance / Defects period
Proposal Form
- Signed and Stamped Proposal Form
- Contractor's Profile and Past experience
- Past claims history (for the contractor)
Project Claim Process
Fast response and progress-based settlement support.
Immediate Reporting
Notify DigiAssure within 24 hours of the incident. For theft or natural disasters, notify the local authorities immediately.
Evidence Preservation
Take clear photos and videos of the damage and the site conditions. Maintain a log of the incident details.
Technical Survey
A licensed surveyor with construction expertise will visit the site within 24 hours to assess the damage.
Salvage Management
Work with the surveyor to protect unaffected materials and manage the disposal of damaged debris.
Repair Estimates
Submit detailed repair or replacement quotes based on the current Bill of Quantities (BOQ) rates.
Document Submission
Upload the completed claim form, repair bills, FIR (if any), and surveyor-verified reports via our portal.
Progress Payment
For large-scale losses, we can release funds in stages as repair work progresses to maintain project liquidity.
Final Settlement
The final assessed amount is settled, allowing you to close the loss file and complete your project successfully.
Frequently Asked Questions
Common queries about construction and project protection answered.
What is Construction All Risks (CAR) insurance?
CAR is a comprehensive policy that covers all physical damage to construction projects and third-party liabilities. It's 'All Risk', meaning everything is covered except what is explicitly excluded.
Does it cover my cranes and excavators?
Yes, expensive construction equipment can be covered under the 'Construction Plant and Machinery' (CPM) section of the project insurance policy while they are on site.
What is the 'Maintenance Period' cover?
This extends the insurance to cover damage that happens while the contractor is fulfilling maintenance obligations or fixing defects after the project is physically completed.
Does it cover faulty design?
Standard CAR policies exclude damage caused by faulty design. To cover such risks, the designer/architect should have a separate Professional Indemnity policy.
What happens if the project is delayed?
Project insurance doesn't cover general delays. However, if a delay is caused by physical damage (like a fire), a 'Delay in Start Up' (DSU) rider can cover your financial losses.
Are my subcontractors also covered?
Yes, a project policy typically covers the Principal (Owner), the Main Contractor, and all Subcontractors working on the project site under a single umbrella.