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There is no denying that all the construction sites are prone to accidents, damages and risks. This is why an insurance policy is needed, which will indemnify you against any loss, theft, or damage to buildings, structures, equipment, and materials during the entire course of construction. This type of policy provides coverage for new construction works, renewal, and remodelling works. The policy is generally taken by the owner of the building and contractor's name can be added to it later. And one’s the name is added, it is known as contractors all risk policy. If you are wondering whether or not to buy this policy, then, it is absolutely essential for you, if you are operating in construction industry. The policy provides fiscal protection against damages, theft, and losses to due to fire, vandalism, wind, lightning and other hazards. The coverage is beneficial for owners or contractors as many lenders, banks, financial institutions will fund the project only when this insurance is taken. The policy covers the project all through the course of its completion and ends automatically after completion. Many times, the policy is purchased after a contract is signed without doing any detailed study of construction project. Make sure, you do not do it as issues with reference to coverage can arise by purchasing such indemnity without going into specifics. The insurance cover should be purchased from insurance company after detailed study of the project. Comprehensive information like number of stories to be built in the building, material to be used, type of roof to be used, and its location needs to be provided to help insurance company assess the level of peril associated with the project. Along with all this, it is also important that you furnish all information about the contractor who will be working on the project, his experience, number of comparable projects successfully executed, etc needs to be provided to make sure all portions of project get covered. You should also provide the company with a planned start date of the project work and proposed date of end of each stage of the project to get more insight into the project. As the level of risk is higher during some phases of construction, informing this to the company can help it to prepare better insurance policy. Remember, resourceful coverage of any possible danger to construction project ensures better recovery during loss period. This ensures that the project gets finished on time and all parties properly compensated. Thus, contractors all risk policy should be bought after an exhaustive study into every aspect of construction project. For more information visit: Contractors All Risk Policy and Insurance For Equipment.
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