A builder/contractor needs insurance protection on the project he is working on during the construction period due to losses against unforeseen perils such as fire, earthquake, flood and other acts of nature including lack of skills, negligence or human error. With no insurance coverage in place, the continuation of the project may be put in jeopardy due to shortage of financial resources to restore the damaged portions.

Contractor's All Risks Insurance provides coverage for eligible construction projects against insured physical loss or damage during the construction period. Depending on the policy terms, coverage may include specified natural perils and other insured risks. It can help contractors manage financial exposure when unexpected events affect project progress.