Contractors All Risk
Contractors All Risks Insurance provides comprehensive protection against specified accidental physical loss or damage to construction works, materials and other insured project assets during the construction period.
Construction projects involve significant financial investment and exposure to risks such as fire, theft, accidental damage, storms, floods and third-party liability.
Contractors All Risks Insurance helps project owners, developers and contractors manage the financial consequences of covered construction-related incidents.
Get A QuoteBenefits Of Contractors All Risks Insurance
Construction Works Protection
Covers specified accidental physical loss or damage to insured construction works.
Materials Protection
Provides cover for insured building materials and project assets against specified risks.
Third-Party Liability
Can cover eligible legal liabilities arising from accidental injury or property damage to third parties in connection with insured construction activities.
Natural Perils Protection
May cover damage caused by specified events such as storms, floods and other insured natural perils.
Project Financial Security
Helps reduce unexpected financial losses that could disrupt construction activities.
Contractual Compliance
May help contractors meet insurance requirements specified in construction contracts.
Typical Contractors All Risks Cover Sections
A CAR policy typically includes two main sections:
- Section 1 — Material Damage: Covers the contract works, temporary works, materials on site, construction plant and equipment against accidental physical loss or damage during the construction period.
- Section 2 — Third-Party Liability: Covers the contractor's legal liability for accidental bodily injury or property damage to third parties arising from insured construction activities.
- Extensions may include removal of debris, professional fees, offsite storage and a maintenance period after completion.
- Standard exclusions include wear and tear, defective design, faulty workmanship (but resultant damage may be covered), and penalties or consequential losses.
How Contractors All Risks Insurance Works
Project Assessment
We review the nature of the construction project, contract value, location, duration and the parties involved.
Set The Sum Insured
The sum insured is typically the full contract value, including materials, labour and any professional fees.
Arrange Cover Before Works Begin
Cover should be in place before construction starts. The policy runs for the construction period and may include a maintenance period.
Report An Incident
If an insured loss or third-party incident occurs on site, notify the insurer and Wysline promptly with the relevant details and documentation.
Claim Assessment And Settlement
The insurer appoints an assessor to review the damage and settles eligible claims, helping the project recover and continue.
Who Needs Contractors All Risks Insurance?
Building Contractors
Protecting residential, commercial and industrial construction projects against accidental loss or damage.
Property Developers
Safeguarding development projects and the significant financial investment they represent.
Civil Engineering Companies
Covering roads, bridges, dams and other infrastructure projects against construction-period risks.
Construction Project Owners
Protecting the works even when a contractor is responsible for construction, ensuring the project investment is covered.
Infrastructure Contractors
Covering large-scale projects involving utilities, pipelines and public works.
Frequently Asked Questions
What is Contractors All Risks Insurance?
Contractors All Risks Insurance covers accidental physical loss or damage to construction works, materials and project assets during the construction period, plus third-party liability arising from construction activities.
Is CAR Insurance mandatory for construction projects?
It is not universally mandatory, but many construction contracts, tender requirements and project financiers require the contractor or project owner to arrange CAR Insurance before works begin.
Does it cover construction equipment and plant?
Construction plant and equipment can be covered, either under the CAR policy or through a separate Contractors Plant and Machinery policy, depending on the insurer's requirements.
Does CAR Insurance cover defective workmanship?
The cost of correcting defective workmanship itself is generally excluded. However, resultant damage to other parts of the works caused by the defect may be covered, subject to the policy terms.
What is the maintenance period?
The maintenance period is a specified period after construction completion during which the contractor may return to rectify defects. Some CAR policies extend cover during this period for damage arising from the contractor's maintenance activities.
Who should arrange the CAR policy — the contractor or the project owner?
Either party can arrange it, depending on the contract terms. It is important that all parties with an insurable interest, including the project owner, main contractor and subcontractors, are noted on the policy.
Get A Contractors All Risks Insurance Quote
Your construction project is a significant investment. Protect it against unexpected setbacks. Let Wysline help you arrange suitable Contractors All Risks Insurance.
Cover, limits and exclusions vary by insurer and are subject to underwriting acceptance and the policy terms and conditions. Speak to Wysline Insurance Agency for a CAR Insurance quotation tailored to your project.