IRDAI License Number: IRDAI/INT/ISNP/2022/250
Insurance companies provide coverage for the loss and damages of the insured premises where the contractors' work is going on. What if there is an additional property surrounding the insured premises belonging or in custody of the policyholder, can that be covered as well? Yes, the surrounding property can be covered under the add-on provision of the insurance policy. This means the policyholder will need to pay an extra premium to have the surrounding property insured. The surrounding property value needs to be defined separately in the policy as well.
Jewel Construction has made a good reputation in the construction industry in the last decade through its contracts and timely execution. The company has knowledgeable management and staff who ensure precaution is taken for at every step of the project. One of the safety measures that the company takes every time is to buy an all-risk insurance policy for their projects.
A couple of years back Jewel won a contract to construct a four-story building in Bangalore. The building site was next to the company’s warehouse. The construction company was confident to finish the project undertaken on a timely basis as per the contract. However, fate had other plans and unfortunately middle of the project a fire started at the construction site and it extended to the warehouse. The damage was done at the construction site as well at the warehouse.
Although thankfully there were no casualties a loss of INR 5 lakhs at the construction site and a loss of INR 2 lakhs was reported. Jewel construction had taken a wise decision to purchase Contractor All Risk Insurance policy and also added on surrounding property add-on coverage for an extra premium. The construction company approached the insurer for the claim settlement. As the damage was done due to an insured peril the insurer agreed to settle the claim for the construction site and as well as for the warehouse.
As the Jewel construction had taken comprehensive insurance with Contractor All Risk Insurance Policy and add-on of surrounding property coverage they were able to get reimbursement for their losses.
