Contractors' All Risks (CAR) insurance policies cover all types of building and civil engineering construction – from residential (housing) to commercial (shopping centres and office blocks) to infrastructure (roads, bridges, dams, water and sewage reticulation pipelines) etc. and offer protection against the hazards which may threaten works under construction. Most construction projects include certain elements of machinery erection (e.g. installation of air conditioning and lifts in buildings).
The policy provides cover on an all risks basis for physical loss or damage to the insured property.
The main hazards covered are: fire and explosion, theft, burglary, collapse, earthquake, landslides, storm and flood. Certain perils (especially forces of nature) obviously vary from location to location, and the likelihood of loss or damage is also influenced by the actual type and method of construction.
Third party liability
This section protects the insured against third party claims for any bodily injury or property damage caused by construction activities.