Construction works are a constant in Malaysia, and contractors face a multitude of challenges that can affect the smooth execution of their projects. It’s a rollercoaster filled with uncertainties surrounding materials, equipment, and workforce safety!
But fret not! There are solutions in the form of Contractor’s All Risk Insurance (CAR), Erection All Risks (EAR), and Workmen Compensation (WC) insurance that bring some much-needed peace of mind to contractors.
Contractor’s All Risk (CAR) insurance: Protection from start to finish
Contractor’s All Risk insurance is often the go-to choice for Malaysian contractors seeking end-to-end project protection. This tailor-made insurance solution covers everything from the initial stages of a project to its completion.
With Contractor’s All Risk insurance in place, the principal, contractors, main contractors and sub-contractors can focus on their core responsibilities, knowing that any unforeseen events or accidents will be covered financially.
Picture this – contractors are working on a project, and suddenly, disaster strikes. The construction site gets damaged, or the materials and equipment go kaput. Yikes!
Calm down, contractors. Contractor’s All Risk insurance is your trusty sidekick, offering comprehensive protection from start to finish. With Contractor’s All Risk insurance as part of the contractor’s team, all parties can focus on their core responsibilities, knowing that any unexpected accidents or events will be covered financially. It’s like having a shield against the unexpected.
With one comprehensive policy, contractors no longer need to worry about sudden and physical loss, or damages from causes such as third-party injuries, collapse, flood, and other forms of accidental damages during the construction or installation period of the project. The financial burden associated with mishaps and disruptions is alleviated, allowing contractors to navigate their projects with confidence and clarity.
Coverage for Contractor’s All Risk insurance
The Contractor’s All Risks insurance provides coverage against:
- Material damage to work under construction
- Damage and loss to contractor’s plant, machinery and equipment
- Damage to Principal’s existing property
- Damage to third party property and/or bodily injury arising in connection with the contract work
Contractor’s All Risk provides coverage for the duration of the construction period and maintenance period.
Here are further details on Contractor’s All Risk insurance
- Section I – Material Damage
This section of the insurance covers the contract works (buildings, plant and machinery) of the insured against any sudden and unforeseen physical loss or damage from causes such as fire, lightning, collapse, collision, impact, malicious damage, theft or burglary, flood, windstorm, subsidence and landslide, and most forms of accidental damage unless specifically excluded. - Section II – Third Party Liability
This section of the insurance covers the liability of the insured against any liability in respect of third party bodily injury or property damage arising out and in the course of the construction works upon:• Accidental bodily injury or illness to third parties
• Accidental loss of or damage to property belonging to third parties
In case of plant and machinery, the policy can be extended to cover testing, and expires after the first test operation or test loading is completed, or after taking over or expiry date of the policy whichever shall be earlier
Erection All Risks (EAR): Specialised Coverage for Complex Projects
For contractors who need to tackle complex projects involving the installation of machinery, plants, or other structures, Erection All Risks insurance offers invaluable protection.
These projects often involve complex logistics, transit, storage, and erection processes, all of which come with their fair share of risks. Erection All Risks insurance steps in to safeguard contractors against unforeseen damages, ensuring that the project can be successfully completed without unnecessary setbacks.
Workmen Compensation (WC) insurance: Caring for the workforce
We all know that the heroes of any construction project are the hardworking individuals on-site. That’s why it’s crucial to prioritise their well-being, and this is where Workmen Compensation insurance comes in.
Workmen Compensation insurance offers financial protection against workplace accidents, injuries, or illnesses. By providing the workforce with this coverage, contractors will meet the legal obligations and also create a work environment that boosts morale and productivity. That’s a win-win!
Maximising the benefits
Construction companies that invest in Contractor’s All Risk, Erection All Risks, and Workmen Compensation can benefit from these insurance products’ coverage.
Safeguarding investments
Contractor’s All Risk and Erection All Risks insurance protect construction projects, materials, equipment, and machinery, from unforeseen mishaps. So, if the unfortunate happens, the financial impact is minimised, allowing contractors to stay on track and keep projects going.
- Ensuring business continuity
Timely project completion is often crucial for contractors’ revenue streams. With comprehensive insurance coverage, contractors can effectively tackle unforeseen events that may cause delays or cost overruns. This enables contractors to maintain business continuity, earn clients’ trust, and secure future opportunities.
- Mitigating liability risks
Construction sites can be risky environments, and accidents resulting in injuries or property damage are not uncommon. By having good insurance coverage, contractors can minimise their liability and protect themselves from potential lawsuits or financial strain arising from such incidents. It should always be safety first! - Empowering the workforce
Workmen Compensation insurance not only protects employees in the event of workplace injuries, illnesses, or disabilities but also showcases a contractor’s commitment to their team’s well-being.
By providing comprehensive coverage, contractors foster a positive work culture, boosting employee loyalty, and reducing turnover. Happy and safe workers could result in successful outcomes!
Finding the right insurance coverage
By embracing comprehensive insurance coverage products, contractors ensure the protection of their investments, and prioritise the well-being of their workforce. So, if you’re in the construction industry, a developer or contractor, don’t let uncertainties hold you back!
Take charge and explore the multiple benefits of comprehensive insurance coverage for the construction industry. At GoInsuran, you’ll enjoy a one-stop seamless experience in the review and purchase of Contractor’s All Risk, Erection All Risks, and Workmen Compensation insurance.
Get in touch with us for a no-obligation quote for the GoInsuran Construction Insurance. Our expert insurers will help you make informed decisions and find the policy that suits your specific project needs!