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Insurance

Construction Insurance

Contractor All Risk Insurance

What does it cover?

This policy covers buildings and civil engineering work under construction, with the extension to cover third party bodily injury and property damage.

Key Coverage

Material damage

Covers against sudden and unforeseen physical loss or damage to contract or erection works/property/items.
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Third-party liability

Covers third party liability for which we shall become legally liable to pay as damages consequent upon:

  • Accidental bodily injury or illness of a third party,
  • Accidental loss or damage to property belonging to a third party.

Occurring in direct connection with the works and happening at or in the immediate vicinity of the site.

The indemnity is also provided for legal costs and expenses provided the liability is within the limit of the liability insured.

Material damage: to cover based on the contract value as stipulated in the Bill of Quantity and Letter of Award


Third-party liability: to cover on the limit stipulated in the contract or as per the requirement of the principals

Note: 
This list is non-exhaustive. Please refer to the sample policy contract for the full list of exclusions under this policy.

  • War, civil war and any act of terrorism.
  • Radioactive and nuclear energy risks
  • Willful acts or willful negligence.
  • Wear and tear.
  • Faulty design.
  • Cost of replacement, repair or rectification of defective material and/or workmanship.
  • Mechanical and/or electrical breakdown or derangement of construction plant and machinery.
  • Consequential loss of any kind.
  • Seepage, pollution and contamination.

Erection All Risk Insurance

What does it cover?

This policy covers plants, machinery, equipment, and steel structures such as bridges in the course of erection, with the extension to cover third party bodily injury and property damage.

Key Coverage

Material damage

Covers against sudden and unforeseen physical loss or damage to contract or erection works/property/items. �

Third-party liability

Covers third party liability for which we shall become legally liable to pay as damages consequent upon:

  • Accidental bodily injury or illness of a third party,
  • Accidental loss or damage to property belonging to a third party.

Occurring in direct connection with the works and happening at or in the immediate vicinity of the site.

The indemnity is also provided for legal costs and expenses provided the liability is within the limit of the liability insured.

Material damage: to cover based on the contract value as stipulated in the Bill of Quantity and Letter of Award

Third-party liability: to cover on the limit stipulated in the contract or as per the requirement of the principals

Note: 
This list is non-exhaustive. Please refer to the sample policy contract for the full list of exclusions under this policy.

  • War, civil war and any act of terrorism.

  • Radioactive and nuclear energy risks.

  • Willful acts or wilful negligence.

  • Wear and tear.

  • Faulty design, defective material or casting and/or bad workmanship.

  • Mechanical and/or electrical breakdown or derangement of construction plant and machinery.

  • Consequential loss of any kind, including penalties, losses due to delay, lack of performance, loss of contract.

  • Seepage, pollution and contamination.

Workmen Compensation Insurance

What does it cover?

This policy cover your statutory liability as an employer.

Key Coverage

Third-party liability

Covers third party liability for which we shall become legally liable to pay as damages consequent upon:

  • Accidents
  • Occupational illnesses


Covers both medical and legal costs which arise in the course of employment under:�

  • Workmen’s Compensation Act 1952.
  • Subsequent amendments to the above act.
  • Common Law.


In addition, the policy may pay for all costs and expenses incurred with our written consent in defending any claim for such compensation.

Annual policy:

Lump sum compensation or based on monthly earnings of employees

Single policy (By construction project):

  • 15%-25% of Contract Value

Standard Common Law Limit: RM1,000,000

Note: 
This list is non-exhaustive. Please refer to the sample policy contract for the full list of exclusions under this policy.

  • Liability assumed by agreement
  • Any employee who is not a ‘workman’ within the meaning of the Workmen’s Compensation Law(s)
  • War, civil war and any act of terrorism
  • Radioactive and nuclear energy risks
  • Claims arising from ‘Latex Protein Toxic Syndrome’ and Asbestos

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