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Contractor All Risk (Insurance) Template for Pakistan

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Key Requirements PROMPT example:

Contractor All Risk (Insurance)

"I need a Contractor All Risk Insurance policy for a large-scale highway construction project in Lahore, Pakistan, commencing March 2025, involving multiple subcontractors and requiring coverage for both construction and 24-month maintenance period, with specific attention to flood risks."

What is a Contractor All Risk (Insurance)?

The Contractor All Risk (Insurance) policy is a specialized insurance contract designed for construction projects in Pakistan, providing comprehensive coverage against various risks associated with construction activities. This document is essential when undertaking any significant construction project, as it offers protection against physical damage to works, third-party liability, and other project-related risks. The policy is structured in accordance with Pakistani insurance laws and regulations, particularly the Insurance Ordinance 2000 and SECP Insurance Rules 2017, and typically covers the entire project duration including the construction phase and maintenance period. It is commonly required by project financiers and owners as a prerequisite for construction contracts, ensuring adequate risk protection for all stakeholders involved in the construction project.

What sections should be included in a Contractor All Risk (Insurance)?

1. Parties: Identification of the insurer, insured contractor, and any additional insured parties

2. Background: Context of the insurance arrangement and the construction project being covered

3. Definitions: Detailed definitions of key terms used throughout the policy

4. Scope of Coverage: Detailed description of what risks and properties are covered under the policy

5. Sum Insured: Statement of the total sum insured and sub-limits for different types of coverage

6. Premium and Payment Terms: Details of premium amount, payment schedule, and payment methods

7. Period of Insurance: Specification of policy duration, including construction period and maintenance period

8. General Exclusions: List of risks and circumstances explicitly excluded from coverage

9. General Conditions: Standard terms and conditions applying to the entire policy

10. Claims Procedure: Step-by-step process for filing and handling claims

11. Obligations of the Insured: Duties and responsibilities of the insured party

12. Termination and Cancellation: Conditions and procedures for policy termination or cancellation

13. Governing Law and Jurisdiction: Specification of Pakistani law as governing law and relevant jurisdiction

What sections are optional to include in a Contractor All Risk (Insurance)?

1. Terrorism Coverage: Additional section when terrorism coverage is specifically requested

2. Professional Indemnity Extension: Optional coverage for professional services related to the construction project

3. Environmental Damage Coverage: Additional coverage for environmental risks when project involves sensitive environmental areas

4. Extended Maintenance Coverage: Optional extended coverage for maintenance period beyond standard terms

5. Cross Liability Clause: Optional section when multiple parties need to be covered as separate entities

6. Delay in Start-up Coverage: Optional coverage for financial losses due to delayed project completion

7. Testing and Commissioning Coverage: Additional coverage for testing and commissioning phase of specialized equipment

What schedules should be included in a Contractor All Risk (Insurance)?

1. Schedule 1 - Project Details: Detailed description of the construction project, including location, type, and scope

2. Schedule 2 - Sum Insured Breakdown: Detailed breakdown of sum insured for different aspects of the project

3. Schedule 3 - Premium Calculation: Detailed calculation of premium including all factors and adjustments

4. Schedule 4 - Covered Property: Itemized list of property covered under the policy

5. Schedule 5 - Named Insureds: Complete list of all parties covered under the policy

6. Appendix A - Claims Documentation Requirements: Detailed list of documents required for claims processing

7. Appendix B - Risk Management Guidelines: Guidelines for risk management procedures to be followed

8. Appendix C - Project Timeline: Detailed construction project timeline and critical dates

9. Appendix D - Technical Specifications: Technical details of the construction project relevant to insurance coverage

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions












































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Relevant Industries

Construction

Infrastructure Development

Real Estate Development

Energy and Power

Industrial Development

Mining

Oil and Gas

Transportation

Public Works

Commercial Development

Relevant Teams

Legal

Risk Management

Insurance

Construction

Project Management

Finance

Compliance

Operations

Procurement

Technical Services

Relevant Roles

Construction Project Manager

Risk Manager

Insurance Underwriter

Claims Manager

Construction Site Manager

Contract Administrator

Insurance Broker

Project Director

Chief Financial Officer

Legal Counsel

Construction Engineer

Quantity Surveyor

Compliance Officer

Project Coordinator

Insurance Claims Adjuster

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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