Contractors All Risks (CAR) Insurance
Contractors’ All Risks [CAR] Insurance protects the interests of principal, contractors, subcontractors and other relevant parties involved in construction activities.
The coverage under the policy is under two sections as below,
Section 1: Material damage
Coverage in this section includes,
- Accidental damage to the contract works
- Fire, lightning , storm, tempest, flood
- Collapse, collision, impact
- Burglary, theft and malicious damage
- Riot, strike, subsidence, landslide, cyclone, hurricane, earthquake, volcanic eruptions.
Policy can be extended to cover existing surrounding property belonging to the principal.
Section 2: Third-party liability
This Section provides indemnity towards legal liabilities of the Insured to third parties arising out of performance of the contract works.
- Accidental bodily injury and/or death to third parties
- Accidental damage to third-party property
The policy can also be extended to cover contractual obligations during maintenance/defect liability period