If you’re planning a building project in South Africa, Contractors All Risk (CAR) insurance is necessary either by contract or as a financial safety net that protects your work in progress, your materials, and your liability if something goes wrong on site. But unlike car or home insurance, there’s no flat rate. What you pay depends entirely on your project.
The Short Answer on Price
There is no rate card for Contractors All Risk, and a figure quoted before an insurer has seen your contract is an estimate, not a price. Insurers apply a minimum premium regardless of job size, so a small once-off project is usually priced at that floor rather than on the value of the work. Above the minimum, the insurer works out the premium for your project on the factors below.
Here’s what drives it up or down:
Project value is the biggest factor. Larger contracts mean more materials, longer timelines, and greater exposure, so the premium scales accordingly.
Type of work matters too. Excavation, demolition, blasting, thatch construction, construction of bridges over water, structural alterations, and work near existing structures are all considered higher risk and priced accordingly.
Site conditions play a role insurers take seriously. Flood zones, unstable soil, high-theft areas, and poor site access all push premiums higher.
Contract requirements, particularly standardised contracts like JBCC or FIDIC, often specify minimum cover limits or liability amounts, which feed directly into your premium calculation.
It is possible in certain instances to opt for a higher excess to reduce the overall rate.
Once-Off vs. Annual Policy: What’s the Difference?
The structure of your policy also affects how it’s priced.
A once-off CAR policy covers a single contract. The insurer looks at that project’s declared value, scope of work, duration, location, and risk profile, then calculates a premium for that contract period alone. Simple: one project, one rate, one premium.
An annual CAR policy works differently. Here, the insurer applies a rate to your estimated annual turnover; while also factoring in the maximum contract value you’d have at risk at any point during the year. Turnover reflects your overall volume of work; the maximum contract value tells the insurer how large a single exposure they might face.
In short:
- Once-off CAR = rate applied to one project’s declared value
- Annual CAR = rate applied to annual turnover, with maximum contract value as a key pricing limit
Don’t Fall Into the Price Trap
It is tempting to judge quotes on premium alone. A lower premium that excludes a critical risk does not save you money, it leaves you exposed precisely when cover matters most. What is included is as material as what you pay.
We at CivilSure believe insurance is a contract where you pay a known cost now to limit one you cannot predict or budget for, on the terms the policy sets out.
What Does CAR Insurance Actually Cover?
