Contractors' All Risks (CAR)/Erection All RisK insurance (EAR) is a tailored policy that offers extensive protection for construction projects. This specialized insurance addresses two critical risk areas: property damage and third-party liabilities, making it indispensable for construction activities.
This component safeguards against physical damage to construction materials and structures. It encompasses various incidents, such as: Inadequate construction methods Damage incurred during renovation activities Deterioration or destruction of temporary structures on-site
This coverage protects against injuries sustained by subcontractors, visitors, or other third parties at the construction site. It ensures that claims from accidents are handled, shielding the contractor from potential legal issues.
Coverage Scope: Carefully examine the inclusions and exclusions of the policy. It’s vital to ensure that all pertinent risks related to your project are covered adequately.
Policy Duration: Ensure the policy limits are adequate to address possible financial losses. Consider both first-party and third-party coverage requirements.
Type of Project: Assess whether the CAR insurance aligns with your specific construction project. Policies are often applicable to various types of projects, including:
Policy Limits: Be aware of the coverage limits in the policy. Ensure that these limits are sufficient to cover possible losses or damages throughout the project's duration.
Coverage Duration: Check the length of the coverage period, as some policies may apply only to certain phases of a construction project. Confirm that the policy duration matches your project timeline.
Claims Process: Understand the insurer's claims procedure. A clear and efficient claims process can help expedite reimbursements in the event of an incident.
Premium Costs: Compare premiums from various insurers to identify a plan that offers a good balance between cost and coverage level. Aim for value rather than simply the lowest price
