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Construction Cover — Industrial Insurance

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Contractors All Risk Insurance provides comprehensive protection for construction projects, covering the contract works, plant and machinery equipment(pertaining to the structure and not belonging to the contractor), and third-party liability from groundbreaking to handover.

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2 Policy Sections
CAR Contractors All Risk
EAR Erection All Risk
NAICOM Licensed — LIC 040
Policy Overview

What Is Contractors All Risk Insurance?

A Contractors All Risk (CAR) policy provides broad accidental damage cover for construction and civil engineering projects. It is an "all risks" policy, meaning it covers all causes of loss unless specifically excluded. CAR insurance protects the principal (project owner), the contractor, and sub-contractors simultaneously on a single policy.

Policy Sections

Two Sections, One Comprehensive Policy

A

Contract Works

Physical loss or damage to the works under construction

  • Physical damage to permanent and temporary works during construction
  • Damage to construction plant, tools, and equipment on site
  • Damage to construction machinery owned or hired by the contractor
  • Removal of debris following an insured loss
  • Cost of re-erection and reconstruction after damage
  • Materials in transit to and stored on the construction site
  • Maintenance period cover after project handover (optional extension)
B

Third Party Liability

Legal liability to third parties arising from construction activities

  • Bodily injury or death to third parties caused by construction operations
  • Property damage to third-party property caused by construction activities
  • Legal defence costs and court awards arising from covered liability
  • Claims from members of the public affected by the project
  • Damage to adjacent properties caused by vibration or structural weakness
  • Cover extends to principal, contractor, and sub-contractors
Coverage Details

Covered Risks & Exclusions

As an "all risks" policy, CAR insurance covers any accidental damage not specifically excluded, giving you the broadest possible protection during construction.

Covered Risks

  • Fire, lightning, and explosion
  • Flood, storm, and water damage
  • Earthquake and earth movement
  • Collapse of formwork or scaffolding
  • Theft and malicious damage
  • Impact by vehicles or aircraft
  • Errors during construction
  • Damage by workmen on site
  • Subsidence and landslip
  • Third-party bodily injury and property damage

Key Exclusions

  • Wear and tear, gradual deterioration
  • Mechanical or electrical breakdown
  • Defective workmanship (faulty part only)
  • War, invasion, and nuclear risks
  • Willful acts or gross negligence
  • Consequential losses (separate policy required)
  • Delay and penalties under contract
  • Motor vehicles on public roads
  • Professional design errors (PI policy)
  • Radioactive contamination

Policy Excess / Deductible

5%

A standard excess (minimum deductible) applies per claim under Section A (Contract Works). The excess is typically 1-5% of the claim amount, subject to a minimum sum agreed at inception. Section B (Third Party Liability) is usually excess-free for approved claims. Excess amounts are fixed at policy inception and stated in the schedule.
Insured Parties

Who Does the Policy Cover?

A single CAR policy can simultaneously protect all parties involved in a construction project.

Project Owner / Principal

The entity commissioning the construction, protected from financial loss on their investment.

Main Contractor

The primary construction company executing the works, covered for damage to plant, equipment, and works.

Sub-Contractors

All sub-contractors working on the project are automatically included without separate policies.

Lenders & Financiers

Banks and finance houses with an interest in the project can be noted as interested parties.

Start Your Construction Project with Full Cover

From site preparation to project handover, Prestige CAR Insurance gives your construction team, your client, and your investment the protection it deserves, all under a single policy.

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