Contractor’s All Risks (CAR) Insurance

Construction is a high-risk industry. Accidents, including personal injuries and property damage, happen all the time, and these accidents may wreak havoc on your plans, schedules and costs even to the point of making you insolvent. So, you need an umbrella cover that will protect you during such times to ensure that you complete your project on time.

A CAR policy covers the physical damage to materials to be used for the project – whether in transit, in storage or forming part of the contract works. There is also an ancillary cover up to moderate limits for third party liabilities. It is a main feature of the CAR policy to cover those who have an immediate material interest in the project. That includes the owner, the contractor and usually all sub-contractors. The length of the period of insurance must correspond to the contract works.

CAR cover generally protects the interest of the Contractors involved in civil, mechanical or electrical contracts like construction of residential and office towers, bridges, dams etc against exposure to damage or liability caused due to a variety of external and internal reasons, during the entire course of construction until the project is handed over to the Principal with an extension to cover the Contractor’s risks during maintenance period also.

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