Contractors all risks (CAR) insurance
This cover offers comprehensive and adequate protection against loss or damage in respect of the contract works, construction plant, equipment and machinery, as well as against third-party claims in respect of property damage or bodily injury arising in connection with the execution of a construction project.
A CAR policy may be concluded by the principal or by the contractors engaged in a project, including all subcontractors.
CAR insurance provides an “all risks” cover, which means every hazard is covered which is not specifically excluded. This means that almost any sudden and unforeseen loss or damage occurring during the period of insurance to the property insured on the construction site will be indemnified.
Scope of Cover
The most important causes of losses indemnifiable under CAR insurance
- Fire, lightning, explosion
- Flood, inundation
- Windstorm of any kind
- Theft, burglary
- Bad workmanship, lack of skill, negligence, malicious acts or human error
The cover attaches as from the commencement of work, or after the items entered in the schedule of the policy have been unloaded at the site, and terminates when the completed structure or any completed part thereof is taken over or put into service. In addition, it is possible to extend the period of cover to include a maintenance period.
Maintenance Visits Cover
The insurer’s liability during the maintenance period is limited to loss or damage caused by the insured in the course of the operations carried out for the purpose of complying with the obligations under the maintenance provisions of the contract.
Extended Maintenance Cover
In addition to the protection provided under the maintenance visits cover, this type of cover also includes loss or damage occurring during the maintenance period but caused during the construction period on the construction site.