Construction All Risk

Construction All Risk (CAR) insurance is a specialized type of insurance that provides comprehensive coverage for all risks associated with construction projects. This type of insurance is essential for owners, contractors, and subcontractors involved in construction projects to protect against various risks and liabilities that may arise during the course of the project.

Property Damage Coverage: CAR insurance covers any physical damage or loss to the construction project itself. This includes damage to the building or structure, construction materials, tools, and equipment on the construction site. The insurance also covers damage caused by natural disasters such as fire, flood, earthquake, or storm, as well as vandalism and theft.

Third-Party Liability: CAR insurance also includes coverage for third-party liability, which protects the insured against claims made by third parties for bodily injury or property damage arising from construction activities.

Delay in Completion: Construction projects can often be delayed due to unforeseen circumstances such as adverse weather conditions, labor strikes, or material shortages. CAR insurance covers additional costs incurred due to project delays, including increased labor costs, equipment rental, and other expenses.

Contractor’s Plant and Machinery: This coverage protects the insured against damage or loss to the contractor’s plant, machinery, and equipment used in the construction project. It includes coverage for breakdowns, accidental damage, and theft of machinery.

Professional Fees: CAR insurance may also cover professional fees incurred for services provided by architects, engineers, and surveyors in relation to the construction project. This coverage ensures that the insured is compensated for the fees paid to professional consultants.

Defects Liability: Some CAR insurance policies may include coverage for defects liability, which protects against any structural defects or faulty workmanship discovered after the project's completion. This coverage provides financial protection for the insured to rectify any defects that may arise within a specified period after the project's completion.

Required Underwriting Information

• Detailed project scope, location, and estimated construction duration.
• Project budget and estimated total project value.
• Details of the contractors and subcontractors involved in the project.
• Detailed project scope, location, and estimated construction duration.
• Risk assessment, including the geographical location, environmental factors, and any potential hazards.
• Construction plans and specifications.
• Previous loss history, if applicable.
• Financial information of the insured party and any other relevant stakeholders.
• Compliance with local building codes and regulations.
• Details of any project-specific insurance requirements by lenders or project stakeholders.