What is ‘Contractors’ All Risks (CAR) Insurance?
Contractors All Risks Insurance is specially designed for builders and a number of other construction trades. CAR insurance is typically taken out jointly by both the contractor and the employer, with other parties such as financing companies having the option of being named to the policy. Because multiple parties are included in the policy they each retain the right to file a claim against the insurer, although all parties also have the duty of informing the insurer of any injuries and damages that may result in a claim. Damage to the property could include the structure not being properly constructed or receiving damage during a renovation. Third-parties, including subcontractors, may become injured while working at the construction site. Contractors’ all risk (CAR) insurance bridges these two risks into a common policy, and helps cover the gap between exclusions that would otherwise exist when using separate policies. Covers provided by Contractors All Risks Policy are as follows;Contract Works
This covers loss of or damage to contract works and materials.Own Plant
This covers loss or damage to your own plant including heavy machinery, tools & equipment.Hired in Plant
This covers loss of or damage to hired in plant. This is particularly important for contractors who hire machinery from plant hire yards and many wouldn’t lease machinery unless you accept full responsibility for theft, loss or damage to the machinery in question.All Risks on Tools
This covers loss of or damage to hand tools and hand held portable power tools belonging to you and your employees. Please note that not all insurers offer cover for employees’ tools although the majority do.What perils/ risks are covered under a Contractors All Risks policy?
The risks covered under CAR insurance include a) Fire,b) Flood,
c) Wind,
d) Earthquakes,
e) Water damage and mold,
f) Construction faults and