CONTRACTORS ALL RISK

Contractors All Risk insurance “CAR”, also referred to as Contract Works Insurance or Construction Insurance, typically provides All Risk cover during the construction period.

It provides complete protection for all types of civils engineering works against different types of construction risks such as fire, lightening, flood, storm, earthquake, cyclone and other accidental or malicious damage.

CAR contracts exclude cover for risks such as defects due to wear and tear, obsolescence (outmodedness or oldness), rust & mildew, loss and damage arising out of war, nuclear disasters, political upheaval, and for faulty workmanship or faulty design. Cover for faulty workmanship, faulty design and errors & omissions are more specifically insured under Design & Construct Professional Indemnity Policies.

CAR insurance is usually taken out in the joint names of the Contractor and the Employer. Other interested parties, such as funders, often ask to be added as a joint name or request that their insurable interest be noted on the policy. Most commonly, CAR policies are underwritten on an Annual basis – covering all projects for the year as well as plant and machinery. But they’re also available for one-off projects.

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