A Contractors' All Risks insurance comprehensively covering the property loss and third-party liability of a civil/building works site. Designed with the orderer, contractor and subcontractor as co-insured.
N2N Insurance Brokerage does not represent any single insurer — it independently represents the client as an FSS-registered broker (Reg. No. 2026-012201). We compare the wordings, rates and service of AIG · Chubb · DB · Hyundai · KB · Meritz to propose the cover and price best suited to your risk. Each insurer's full wording is provided at application and binding.
A Contractors' All Risks insurance comprehensively covering the property loss and third-party liability of a civil/building works site. Designed with the orderer, contractor and subcontractor as co-insured.
Comprehensive cover of Section I (property) and Section II (liability).
Multiple insured — orderer, contractor, partner, designer.
Cover extended to the commissioning period and the Defects Liability Period (DLP).
Reflecting the by-works risk — civil, building, remodelling, underground.
General/specialist construction, SOC contractors.
Government works, LH, public corporations and private developers.
Plant, renewable-energy, infrastructure EPC consortia.
| Apartment new-build (complex · works value 100bn) | Section A property 100bn (100% of works value) / Section B TPL 5bn per accident · key: maintenance 12 months · LEG 3 · surrounding property 10bn |
|---|---|
| Small remodelling (1bn works) | property 1bn / TPL 1bn |
| Civil works (bridge · 3bn) | property + equipment 3bn / TPL 3bn · key: ground subsidence · surrounding property · engineering |
Figures above are sum-insured (cover-limit) design examples, not premiums. (General industry example)
| Policy period | Works period + maintenance period (DLP) |
|---|---|
| Insurers | AIG · Chubb · DB · KB · Meritz · Hyundai (compared, reinsurance-linked) |
| Sum insured | Contract value 100% basis |
| Turnaround | 1–4 weeks (longer for large works) |
| Channel | Individual consultation with our broker (010-5755-6465) |
If the insured event has already occurred at the time the contract is made, the contract is void. However, where the contract is void due to the company's intent or negligence, or where the company knew or could have known of the nullity before acceptance yet did not refund the premium, the company refunds the premium with interest at the policy-loan rate published by the Korea Insurance Development Institute, compounded annually, for the period from the day after payment to the day of refund.
The specific losses not covered (exclusions) are set out in each insurer's policy wording and product description; on this page, see the “Cover” tab(or the “Losses not covered” section) for the main exclusions. For other cover-specific grounds on which claims are not paid, please refer to the policy wording.
The company provides cover, in accordance with the policy, from the time it accepts the application and receives the first premium. Where the company accepts the application after receiving the first premium with it, cover also begins from the time the first premium was received.
The application must be completed by the policyholder, and the policyholder and the insured must sign it by hand. Failure to sign by hand may result in disadvantages regarding the validity of the contract. On an internet cyber-mall, an electronic signature may be used instead.
The policyholder has the right to be given and have explained the information needed about the product they wish to buy.
The insurer and N2N Insurance Brokerage must explain the important matters of the product to ordinary financial consumers.
When applying, the policyholder, the insured or their agent must disclose truthfully the facts they know regarding the questions in the application (including the questionnaire). Otherwise the claim may be declined or the contract cancelled. Where insurance is taken out by telephone or other means of communication, the duty is performed by answering the seller's questions, which are recorded, without a separate written questionnaire, so answers must be given with particular care.
If, after the contract is made, any of the following arises in respect of the subject-matter insured, the policyholder or the insured must notify the company in writing without delay and obtain endorsement on the policy.
The surrender value is the amount paid if the contract is cancelled early. Unlike bank savings, insurance combines risk protection and savings: part of the premium is paid out as claims to other policyholders who suffer accidents, and part covers the insurer's operating expenses, so the surrender value on early cancellation may be less than the premiums paid, or nil.
Under Article 59-4(1) of the Income Tax Act (special tax credit), for protection-type insurance taken out by an employee only, a tax credit of 12% of the premium paid (capped at KRW 1 million per year) is available. Tax matters may change with amendment or repeal of the relevant tax law.
Except as provided by law, the insurer and N2N Insurance Brokerage do not collect, use, inspect or provide personal data related to this contract — for its conclusion, maintenance and claim payment — without the consent of the policyholder, the insured or the beneficiary. However, for those purposes the insurer may, with the consent of the policyholder and the insured and in accordance with law, provide personal data to other insurers and insurance-related bodies.
The above is a summary and excerpt of the policy wording; for grounds on which claims are not paid and other details, please refer to the policy wording and product description.
Risk patterns that come up often at a works site — a five-scenario self-check
Construction sites carry property loss and third-party liability risk during the works.
Orderers need cover for works-object loss and surrounding-structure liability.
Plant, renewable-energy and infrastructure EPC carry complex works risk.
Excavation works carry ground-subsidence/cracking risk to adjacent structures.
Outdoor works face works-object loss from typhoon, downpour and collapse.
At an urban building site, cracking appeared in an adjacent building during basement excavation, and the building owner claimed damages from the contractor. If the contractor, when taking out Contractors' All Risks (CAR), included Section B (Third-Party Liability) and a ground-subsidence-related endorsement, the compensation and defence costs for the adjacent-structure loss become reviewable under the wording. Conversely, insuring only Section A (property loss) and omitting the liability/ground endorsement leaves the most frequent complaint-type dispute of excavation works fully exposed. This is the item that urban, close-proximity sites most often miss at enrolment.
Source: (General industry example)
The wording and structure points decision-makers most often overlook
If the sum insured falls short of the actual works value, proportional compensation applying only the insured ratio can apply on an accident. Insuring on the contract value 100% basis is the principle.
The level excluding only the defective part (LEG 2) and the level covering the consequential loss arising from the defect (LEG 3) differ greatly in cover scope. Decide the level matched to the method/structure at enrolment.
If the orderer, subcontractor and designer are not named co-insured, they become the target of the insurer's subrogation after an accident, which can escalate into a stakeholder dispute.
The questions decision-makers ask most when considering Contractors' All Risks (CAR) insurance
If the sum insured is below the actual works value, proportional compensation can apply on an accident, paying only the insured ratio. Contractors' All Risks is, in principle, insured on the contract value 100% basis.
The base wording excludes the ordinary defect-repair cost. Loss arising from a design/construction defect varies in cover scope by the defect-cover endorsement level (LEG 2, LEG 3), so decide the level matched to the method/structure at enrolment.
A defect arising during the maintenance period after completion can be covered by a Maintenance endorsement. It is usually designed within 12–24 months after completion, so confirm the endorsement and its period in advance.
The orderer, contractor, subcontractor and designer can be named co-insured. If not named, they can become the target of the insurer's subrogation after an accident, so including the works stakeholders as co-insured at enrolment is usual.
Third-party bodily/property loss during the works is handled under Section B (Third-Party Liability, TPL). A site with high ground-subsidence/cracking risk from excavation usually reviews a ground-related endorsement together.
The insurer assesses it on the works type (building, civil, tunnel, bridge), method, works period and construction season, ground conditions, proximity of surrounding structures and the contractor's past accident history. The exact premium and acceptance are confirmed after underwriting by insurers such as AIG, Chubb, DB, KB, Meritz and Hyundai.
