Contractors All Risks (CAR) Insurance is a comprehensive insurance policy designed to cover construction projects and protect contractors, property owners, and subcontractors against a wide range of risks during the construction period.
Contractor’s All Risk Insurance policy covers the risks during construction, comprehensively. It includes physical loss or damage to property, plant, machinery and tools, works brought on to the site and temporary works erected on-site, as well as third-party liability related to work conducted on the site.
Requirements for Quotation
• Description of construction works
• Location of construction
• Total Value of Machinery and equipment on site
• Value of Materials on site at any one
• Value of the contract (contract works). This is the value of the property on completion
• Value of the surrounding properties
• Third party liability cover limit
Those Eligible for the Cover
• Construction companies in property development
• Individual and private contractors
• Companies engaging in the construction and maintenance of bridges, roads, dams, sewerage and civil engineering and other infrastructural erection
• Companies and individuals engaged in construction of own premises or sites
Key Features of CAR Insurance
The policy has three Main Sections of Cover:
Section I: Material Damage
Covers physical loss or damage to:
- The construction works (e.g., buildings under construction)
- On-site materials
- Construction equipment and machinery
- Temporary works (e.g., scaffolding, site offices)
Section II: Third-Party Liability
Covers legal liability for:
- Injury or death of third parties (non-employees)
- Damage to third-party property caused by construction activities
Section III: WIBA and Employer’s Liability
This provides cover to the employees in the course of employment. In case of death or injury during course of employment, this section will provide cover as prescribed in the Work Injury Benefits Act of 2007.
The Employers’ Liability policy serves to legally protect the employer in the event that an employee sustains bodily injury by accident or disease (during the period of their employment). This means that the employer is covered against legal liability under common law for damages, negligence or statutory duty and any claimant’s [employee’s] costs and expenses of litigation.
Additionally, it will cover you [the employer] for any legal costs or expenses incurred during this period.