In the construction industry, managing risk is as crucial as managing the build itself. From property damage to third-party claims, unexpected challenges can disrupt even the most carefully planned projects. Contractors All Risks Insurance (CAR) offers a comprehensive solution, ensuring peace of mind for everyone involved.
At Advantage Home Construction Insurance, we understand that protecting your construction projects is about more than compliance – it’s about enabling confidence and continuity. Here’s everything you need to know about CAR insurance and how it safeguards your projects.
What Is Contractors All Risks Insurance?
Contractors All Risks Insurance, commonly known as CAR, is a specialised policy that provides robust coverage for construction projects. It addresses two primary categories of risk: property damage and third-party injury or damage claims.
Property damage can include issues such as structural faults, damages during renovations, or harm to temporary works on-site. On the other hand, third-party claims often arise when subcontractors or other parties sustain injuries while working on the site. CAR insurance combines these coverages into a single, cohesive policy, eliminating gaps that might occur with separate policies.
This type of insurance is widely used for projects ranging from residential buildings to infrastructure developments like sewage treatment plants, flyovers and airports.
How Does Contractors All Risks Insurance Work?
Typically, a CAR insurance policy is jointly taken out by the contractor and employer, although other stakeholders, such as financiers, can also be included. This shared approach ensures all parties have the right to claim against the policy in case of an incident, fostering collective responsibility for the project.
The core purpose of CAR insurance is to protect all parties involved, regardless of who caused the damage. For example, if a contractor’s actions result in damage to a building under the same CAR policy, the building owner can make a claim. The insurer, however, is not permitted to recover those costs from the contractor.
Risks commonly covered by CAR insurance include natural disasters like floods, construction faults, water damage and even fire-related incidents. However, it is important to note that typical exclusions include normal wear and tear, intentional negligence or subpar workmanship.
Why Is Contractors All Risks Insurance Important?
The unpredictable nature of construction makes CAR insurance an essential safety net for developers, contractors, and stakeholders. It not only protects against costly disruptions but also fosters trust and collaboration among all parties. By ensuring comprehensive coverage, CAR insurance helps mitigate the financial impact of unforeseen incidents, allowing projects to proceed with minimal setbacks.
How Can Advantage Support Your Projects?
Contact our team today to learn more about how our CAR insurance solutions can safeguard your next construction project.