Did You Know? Exclusion in Section II of the Contractor’s All Risk Insurance Policy

Your Contractor’s All Risk (CAR) Insurance policy consists of two main coverages which are Material Damage (Section 1) and Third Party Liability (Section 2). 

This article will explain the exclusion number 3 as stated under Section 2 which is called “Damage due to vibration and or by the removal or weakening of support.” 

In CAR Insurance policy, it is stated that the Insurer shall not be liable for the damage to any property or land or building caused by vibration or by the removal or weakening of support or injury or damage to any person or property occasioned by or resulting from any such damage (unless especially upon by endorsement). 

Thus, as principal/contractor/sub-contractor, you need to undertake adequate pre-construction survey, planning, and communication. You also need to pay attention to some other factors such as equipment type and soil conditions to estimate vibration transmission distance. It has been the contractor’s responsibility to keep the vibration level below the maximum level as regulated by the prevailing building construction standards. 

Furthermore, kindly review your policy to ensure that the coverage provided fits your need. If there are any changes required on the information of your personal details, scope of the coverage, or clarification about the terms and conditions of the policy, please feel free to contact us at 021 - 2523110 and we would be pleased to assists you.