Construction is a high risk industry.  Accidents, including personal injury and property damage occur frequently, at a cost to the contractor. Most of these property damage claims are, or could be, covered under the Contractors' All Risks (CAR) policy.

What Is CAR Insurance?

CAR policies insure against physical loss or damage to works, plant, equipment and materials during the course of construction. They are sometimes called Builder's Risks policies.

Unlike other types of insurance, the CAR insurance policy is not limited to coverage against specified perils such as fire and earthquake.  Everything is covered unless it is specifically excluded.

CAR insurance usually contains a section for Third Party Liability.

Typical Policy Wording

The standard policy covers "the Insured in respect of physical loss or damage to the Insured Property described in the Schedule arising FROM ANY CAUSE except as stated hereafter."

The Insured

This usually includes the employer, contractor, subcontractors/suppliers and consultants.

Under all internationally accepted forms of construction contracts, the contractor will have care of the works until completion and will own the equipment and materials.

Therefore it is the builder that will be contractually responsible for any accidental damage to the works, which is the very risk that CAR policies are issued to cover. If you are a contractor, this policy will compensate you for any expenses which you may have to pay to your client as a result of loss or damage to the property being built.

It also covers all sums which you may be legally obligated to pay for claims received from Third Parties.

At your option, you can also cover items such as:

• Damage to the building occurring during the Maintenance Period
• Architects’ and Surveyors’ Fees  which may be required if the property has to    be rebuilt
• Removal of Debris if any part of the building has to be rebuilt
• An Escalator Clause that would take into account the effects of inflation on building materials if your property is being built over a period of more than one year

Contact one of staff about how we can cover your construction projects!