Contractors All Risks

Contractors All Risk commonly referred to as CAR covers contractors against loss or damage arising from insured perils in the course of construction (of buildings, roads, bridges, dams and similar infrastructure).

Civil engineering works ranging from small buildings to massive dams are prone to damage from a range of causes e.g. fire, water, storm, impact and internal defects etc. Exposure to damage commences at the time of delivery of materials to the contract site, while the work is in progress and during the subsequent maintenance period when the work is handed over to the principal.

COVERAGE OF THE POLICY

During the construction period, coverage of the policy is divided into:-

• Contract works from various risks based on contract requirements such as fire and lightning, accidental damage during construction, water damage, floods, storm or tempest, collapse, collision, impact, aircraft, burglary, theft and malicious damage, damage due to defects in materials, design or workmanship and riots, strikes, landslide, earthquake etc.
• Contractor’s plant, machinery and materials on site against loss, damage or destruction. The loss will be made good by repair or replacement.
• Contractor’s liability to members of the public (third parties), for death, injuries or damage to their property arising out of the contractor’s negligence.

REQUIREMENTS TO PLACE COVER

• Dully filled proposal form
• Bill of quantities if available
• Break down of Sums Insured for section A – Material Damage & section B – Third Party Liability.
• Subcontractors’ details and what they will be doing
• Maintenance period