INSURANCE FOR THE CIVIL & CONSTRUCTION INDUSTRY
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.
THE LEGAL STUFF
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