CONTRACTORS ALL RISKS (CAR) INSURANCE

Formerly known as “contractors’ all risks insurance”, a more appropriate term is now “construction all risks” insurance as it is now commonly procured by owners as well as contractors. 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. The period of insurance normally runs from the contract start date until practical completion (or handover) although it is possible to secure cover for some losses that occur during the maintenance or defects rectification period.

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  • Fire, lightning, explosion
  • Flood, inundation
  • Windstorm of any kind
  • Earthquake
  • Theft, burglary
  • Collapse
  • Bad workmanship, lack of skill, negligence, malicious acts or human error