Construction All Risk (CAR) Insurance
Construction All Risk insurance is a comprehensive project insurance policy that protects against loss or damage to contract works, construction materials, and third-party liabilities throughout the entire construction period. It is the single most critical insurance for any construction project — from residential buildings to massive infrastructure developments.
What Does It Cover?
CAR insurance provides all-risk coverage from the first day of construction until project handover — and beyond.
Contract Works
Covers the full value of the construction work — including permanent and temporary works — against all risks of physical loss or damage during the construction period. This is the core of the policy.
Materials on Site
Protection for construction materials, supplies, and components stored at the project site or in approved storage locations. Covers theft, damage from weather events, fire, and other perils.
Plant & Machinery
Coverage for construction plant, equipment, and machinery used on the project site — including cranes, excavators, scaffolding, and temporary structures essential to the build.
Third-Party Liability
Protects against legal liability for bodily injury or property damage to third parties arising from construction activities. Covers compensation, legal costs, and defense expenses.
Debris Removal
Covers the cost of removing debris following an insured loss — including demolition of damaged structures, site clearance, and disposal of wreckage, which can be a significant expense after a major incident.
Architects & Engineers Fees
Reimburses professional fees incurred for architects, surveyors, and consulting engineers required to redesign or supervise the reinstatement of damaged works after a covered loss.
Surrounding Property
Coverage for damage to existing structures and properties surrounding the construction site caused by construction activities such as vibration, removal of support, or weakening of foundations.
Maintenance Period Coverage
Extends coverage beyond project completion into the defects liability or maintenance period — typically 12 to 24 months. Covers damage discovered during this period that originated from causes during construction.
Who Needs This?
CAR insurance is essential for anyone involved in construction projects — from small residential builds to mega infrastructure developments.
Builders & Contractors
General contractors, civil contractors, and building companies executing construction projects need CAR to protect against the financial impact of damage to works in progress.
Real Estate Developers
Property developers investing significant capital in residential, commercial, or mixed-use developments need CAR to safeguard their investment throughout the construction phase.
Project Owners & Principals
Organizations commissioning construction work — whether corporate offices, factories, or public buildings — benefit from CAR as the ultimate project stakeholder.
Infrastructure Companies
Companies involved in roads, bridges, tunnels, dams, airports, and other infrastructure projects where the scale and complexity demand comprehensive risk coverage.
Sub-Contractors
Specialized sub-contractors — whether in structural, electrical, plumbing, or finishing work — who need coverage for their scope of work within a larger project.
Key Benefits
Why CAR insurance is a non-negotiable for every construction project.
All-Risk Coverage
Unlike named-peril policies, CAR operates on an all-risk basis — covering everything unless specifically excluded. This provides the broadest possible protection for your project.
Single Policy, Complete Protection
One policy covers the works, materials, machinery, and third-party liability — eliminating gaps that arise from multiple separate policies and simplifying claims settlement.
Lender & Contract Compliance
Banks and financial institutions require CAR for project financing. Most construction contracts also mandate CAR insurance, making it essential for project tendering and execution.
Financial Continuity
A major loss during construction can derail a project entirely. CAR ensures that the financial impact is absorbed by the insurer, allowing the project to continue without catastrophic cash flow disruption.