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What does Contractors All Risk cover include?

by | Jan 25, 2019 | Contractors All Risk | 0 comments

Plant Insurance

What does Contractors All Risk cover include?

Contractors All Risk (CAR) insurance is usually provided on a monthly or once-off basis and provides protection for individual construction contracts, including:

– Contract works

– Own plant and tools – monthly only

– Hired in plant – monthly only

– Temporary buildings

A CAR policy is generally the single most inclusive insurance policy for those who work within the construction industry.

How do insurers calculate risk?

Before insurers quote you a premium for your CAR policy, they will first consider a number of factors in order to determine what kind of risk you’re exposed to.

Such factors will include the scope, value, location and duration of the work you will be undertaking.

Do I need to cover temporary site structures?

Sometimes temporary site buildings are automatically included in a CAR policy as long as these are the insured works originally stipulated when buying the policy.

They may be covered under the general definition of the contract works indemnified by the definition of contract works within the policy.

If not, then it will be down to you, the policyholder, to amend said policy to include any temporary buildings as required.

How much cover do I need?

Once-Off: The amount you require will usually depend on the contract value that will be undertaken during the policy term.

Monthly: The amount you require will usually depend on your estimated annual turnover and the value of the biggest contract you’ve undertaken at the time of application.

You should also consider:

– Free issue materials

– Professional fees

– Terms imposed by regulatory authorities such as project managers, municipalities, site inspectors etc.

What other policies should I consider?

In order to ensure that you have all your bases covered, you may also want to consider:

– Public liability

– Employers liability

– Bakkie insurance

For a Contractors All Risk quote click here or speak to one of our specialists today on 080 777 777 1.

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Contractors All Risk policy – Should You Put Your Name On It?

Dirk Gouws (Engineering Insurance expet, AC&E Engineering Underwriting Managers) explains the meaning of having your name on a Contractors All Risk policy.

What is the Defects Liability Period?

The Defects Liability Period starts when the Certificate of Completion is issued and continues for the period agreed to in the Contract. During the Defects Liability Period, the Contractor has to obey all written instructions from the Engineer to carry out repairs and fix any defects which appear in the Permanent Works, so that, at the end of the Defects Liability Period, the Permanent Works are in the condition required by the Contract.

What is Plant All Risk Insurance?

Your onsite machinery (plant) is vulnerable to a number of problems such as breakdowns, vandalism and theft. Missing a project deadline can be bad news for your bottom line as well as your reputation. Plant All Risk Insurance covers you for loss of, or damage to, construction plant and equipment whilst in storage, transit, on the contract site or being use as a tool of trade.

Plant Hire – Have you read the Contract?

Have you read your plant hire contract? You should get evidence of the plant hire contract when you hire in a concrete pump truck or any other item of plant.

What Are Latent Defects?

A Latent Defect is a defect that is not detected by ordinary inspection, but lies hidden until sometime later, when it’s discovered because it causes a problem that everyone can see.  An example of latent defects would be weak concrete in part of a bridge column, that looks the same as strong concrete, but collapses when a heavy truck drives over the bridge.

How Does a Contractor Claim For An Extension of Time?

A Contractor can claim for an extension of time, thus extending the Due Completion Date for a project. He can also claim for any costs which will increase due to being on site for longer (called time-related General Items).

Does a Construction All Risk Policy cover damage to surrounding property?

Yes, damage to surrounding property is covered by a construction all risk policy, provided it’s included as an add-on to the Contract Works cover. This means an extra premium would be charged to get the specified surrounding property covered.

When a Disgruntled Employee Sabotages Your Structure…

Does Contractors Liability on the Contractors All Risk policy cover damages to a structure, caused by a disgruntled employee’s pre-meditated sabotage?

What is ‘Practical Completion’?

Practical Completion doesn’t mean the Contractor has finished the Works in every detail. It means the Works are sufficiently complete to be safely used by the Employer for the purpose he intended. The Contractor may still complete minor items and fix defects after Practical Completion, as long as the Employer isn’t inconvenienced.

What does Contractors All Risk cover include?

INSURANCE FOR THE CIVIL & CONSTRUCTION INDUSTRY CALL US ON 080 777 777 1 What does Contractors All Risk cover include? Contractors All Risk (CAR) insurance is usually provided on a monthly or once-off basis and provides protection for individual construction...

CALL US ON 080 777 777 1

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