by AdminReal Contractor’s All Risk Claim: RM728,000++ Construction Damage Caused by Neighbouring Fire
Insurance is often something we hope we never need.
But unexpected situations can happen anytime — even when we are careful.
In this case, our client was carrying out construction work at a project site. Everything was progressing normally.
However, an unexpected incident happened.
A fire suddenly broke out at a neighbouring factory, and the intense heat from the fire caused heat damage to the wall structure at our client’s construction site.
This incident was not caused by the contractor’s negligence. Sometimes, even when we take precautions, incidents from nearby premises can still affect our project and cause significant losses.
Fortunately, the contractor had purchased a Contractor’s All Risks (CAR) Insurance Policy.
A claim was submitted to the insurance company.
After assessment by the insurer and loss adjuster, the claim details were as follows:
Adjusted Loss: RM856,540.20
Less Deductible: RM128,481.03
Final Claim Settlement: RM728,059.17
This claim process took about 4–5 months.
During the process, I assisted the client in:
• Following up with the insurance company
• Preparing and submitting important supporting documents
• Responding to queries from the insurer and adjuster
Proper documentation and timely follow-ups helped to speed up the claim assessment and settlement process.
Eventually, the claim was approved and paid by the insurance company.
Key Reminder for Contractors
Construction projects face many risks — not only from the site itself, but sometimes from unexpected incidents happening nearby.
Even when a contractor takes all necessary precautions, external events can still lead to financial losses.
Having the right insurance coverage can help reduce the financial impact when such situations occur.