Contractors all risks insurance safeguards the assets against accidents that may arise from contract work. It also covers loss from accidental damage to decoration materials such as floorboards, tiles and wallpaper during the contract period.
This insurance also includes third party liability. In the event of any accidental death or bodily injury to a third party, it transfers the risk to insurance companies which will bear the compensation liability.
Nowadays, most property management companies require property owners, occupants or the construction contractor to provide proof of insurance before they are permitted to carry out decoration works.