Construction All Risks (CAR) Insurance is a comprehensive solution designed to protect project owners, contractors, sub-contractors and other stakeholders from the financial risks associated with construction projects. This policy provides coverage for physical damage to the project, including materials, structures, and equipment, whether due to unforeseen events such as fire, theft, natural disasters, or accidental damage. By mitigating financial uncertainties and ensuring smooth project execution, CAR Insurance is an essential risk management tool for stakeholders involved in construction and infrastructure development.
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Construction All Risk Insurance provides extensive coverage for damage to ongoing works, whether caused by fire, storms, theft, vandalism, or other unforeseen incidents. This includes damage to structures, equipment, and materials, whether they’re on-site or in transit. This protection is critical for contractors who need to manage risks associated with dynamic construction environments.
By mitigating the financial impact of unexpected damage, Construction All Risk Insurance ensures projects can proceed without costly interruptions, helping brokers position this product as indispensable for clients managing large-scale developments.
Construction sites inherently involve third-party risks, such as property damage or injury to individuals caused by construction activities. Construction All Risk Insurance includes coverage for third-party liability claims, ensuring that contractors are protected from legal and compensation costs associated with these incidents.
This aspect of the policy is invaluable for contractors working in urban areas or near public infrastructure, allowing brokers to promote Construction All Risk as a critical risk management tool.
Construction All Risk Insurance extends to cover damage or loss of construction equipment and machinery. Whether caused by accidental damage, theft, or natural disasters, this protection ensures that costly tools and heavy machinery remain financially secured.
Brokers can highlight this coverage to contractors who rely on expensive equipment, emphasising its value in maintaining project continuity and avoiding costly replacements.
Transporting materials to construction sites introduces risks of damage or loss during transit. Construction All Risk Insurance includes protection for materials in transit, ensuring that construction components arrive at the site intact and ready for use.
This feature is particularly relevant for brokers working with contractors involved in large-scale or remote projects, where transportation risks are elevated.
Even after completion, defects or damages may arise in construction projects. Some Construction All Risk policies extend coverage to include maintenance periods or post-completion liabilities, ensuring contractors are protected against claims related to work quality or structural issues.
This reassurance helps brokers provide contractors with a comprehensive solution that safeguards their reputation and financial stability.
Construction projects often involve multiple subcontractors, each bringing unique risks to the site. Construction All Risk Insurance provides coverage for damage caused by subcontractor work, ensuring that the principal contractor’s liability is minimised.
This coverage allows brokers to present Construction All Risk as a robust and inclusive policy, suitable for projects involving diverse teams and complex operations.
Construction All Risk Insurance provides extensive coverage for damage to ongoing works, whether caused by fire, storms, theft, vandalism, or other unforeseen incidents. This includes damage to structures, equipment, and materials, whether they’re on-site or in transit. This protection is critical for contractors who need to manage risks associated with dynamic construction environments.
By mitigating the financial impact of unexpected damage, Construction All Risk Insurance ensures projects can proceed without costly interruptions, helping brokers position this product as indispensable for clients managing large-scale developments.
What is Construction All Risk Insurance?
Construction All Risk (CAR) Insurance is a tailored policy that protects construction projects against physical loss or damage and provides liability coverage for third-party claims. It ensures that contractors, developers, and property owners can manage unforeseen incidents without financial strain.
Who Needs Construction All Risk Insurance?
CAR Insurance is essential for contractors, subcontractors, property developers, and any stakeholders involved in construction projects. It provides a safety net for the unpredictable risks inherent in the building process.
Construction All Risk Insurance protects against a wide range of risks, from damage to construction sites to third-party liability claims, ensuring holistic protection.
By covering unforeseen costs, Construction All Risk Insurance enables contractors to maintain financial stability and focus on project completion without disruptions.
Contractors with Construction All Risk Insurance demonstrate professionalism and a commitment to managing risks responsibly, enhancing trust with clients and stakeholders.
Exance offers tailored Construction All Risk Insurance options that align with specific project needs, budgets, and timelines, providing brokers with versatile solutions.
Our streamlined claims process ensures timely financial support, minimising delays and keeping projects on schedule.
From small residential builds to large-scale commercial developments, Exance Construction All Risk Insurance accommodates projects of all scopes and complexities.
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What does Construction All Risk Insurance cover?
Construction All Risk Insurance covers physical loss or damage to construction works, third-party liability, equipment, materials in transit, and in some cases, completed works during the maintenance period.
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Who is covered under Construction All Risk Insurance?
Construction All Risk policies typically cover contractors, subcontractors, property developers, and other stakeholders involved in the insured project.
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What is excluded from Construction All Risk Insurance?
Common exclusions include wear and tear, deliberate acts, and faulty design or workmanship.
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Does Construction All Risk Insurance cover natural disasters?
Yes, Construction All Risk Insurance typically includes coverage for damage caused by natural disasters such as storms, floods, or earthquakes. However, the extent of coverage may vary depending on the policy terms, so it’s essential to review the specific inclusions and exclusions.
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What is the difference between Construction All Risk Insurance and Public Liability Insurance?
Construction All Risk Insurance provides broader coverage, including damage to construction works, materials, and third-party liabilities, while Public Liability Insurance specifically covers claims made by third parties for property damage or injury caused by the contractor’s operations. Construction All Risk Insurance is more comprehensive and tailored for construction projects.
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Can Construction All Risk Insurance cover multiple projects at once?
Yes, some Construction All Risk policies can be arranged as an “annual policy” to cover multiple projects within a specified period, ideal for contractors managing several construction sites simultaneously. Brokers can work with Exance to design the most suitable policy for such clients.
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What happens if a project timeline is extended?
Construction All Risk Insurance policies can often be extended to align with a revised project timeline. It’s crucial to inform the insurer promptly of any changes to avoid gaps in coverage.
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Does Construction All Risk Insurance include coverage for employee injuries?
No, Construction All Risk Insurance does not typically cover employee injuries. This type of coverage is provided under Employer’s Liability Insurance, which is usually a separate policy and is often required by law for construction companies.
