https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3AConstruction_all-risk_%28CAR%29_insuranceDefinition:Construction all-risk (CAR) insurance - Revision history2026-06-13T22:41:47ZRevision history for this page on the wikiMediaWiki 1.43.8https://www.insurerbrain.com/w/index.php?title=Definition:Construction_all-risk_(CAR)_insurance&diff=10629&oldid=prevPlumBot: Bot: Creating new article from JSON2026-03-11T16:50:02Z<p>Bot: Creating new article from JSON</p>
<p><b>New page</b></p><div>🔨 '''Construction all-risk (CAR) insurance''' is a comprehensive [[Definition:Insurance policy | insurance policy]] that provides [[Definition:Coverage | coverage]] for physical loss of or damage to construction projects — encompassing the works under construction, materials, plant, and equipment — against a wide range of perils unless specifically excluded. While the term overlaps significantly with [[Definition:Construction all risk (CAR) | construction all risk (CAR)]] and [[Definition:Builder's risk insurance | builder's risk]], "CAR insurance" is the phrasing most commonly encountered in international and [[Definition:Lloyd's of London | London market]] policy wordings, where it has a long-established pedigree as the standard form for insuring civil engineering and building projects worldwide.<br />
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⚙️ A CAR insurance program is typically structured in two main sections. Section I covers material damage to the contract works, including temporary works, materials stored on or off site, and — via extension — surrounding property of the principal. Section II provides [[Definition:Third-party liability insurance | third-party liability]] protection for bodily injury and property damage arising out of the construction activities. Optional extensions can add [[Definition:Delay in start-up (DSU) insurance | delay in start-up (DSU)]] cover, which indemnifies the project owner for revenue losses if the project completion is delayed by an insured event. [[Definition:Underwriting | Underwriters]] set [[Definition:Premium | premiums]] based on the total project value, construction type, duration, geographic [[Definition:Catastrophe exposure | catastrophe exposure]], and the contractors' experience and safety records. Maintenance periods — typically twelve to twenty-four months after handover — are also included, covering defects that manifest during that window.<br />
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🌍 For large-scale infrastructure and real estate developments, CAR insurance is often the single largest [[Definition:Risk transfer | risk transfer]] mechanism protecting all parties involved — owners, main contractors, subcontractors, and financiers. Lenders routinely require evidence of CAR coverage before releasing project finance, and [[Definition:Surety | surety]] companies factor the quality of the insurance program into their bond decisions. In emerging markets experiencing rapid construction growth, demand for CAR insurance is expanding, and [[Definition:Specialty insurance | specialty carriers]] with deep engineering knowledge command significant market share. The complexity of modern megaprojects — involving tunneling, offshore elements, or advanced materials — continues to push [[Definition:Reinsurance | reinsurers]] and primary insurers to innovate on policy wordings and [[Definition:Risk assessment | risk assessment]] techniques.<br />
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'''Related concepts:'''<br />
{{Div col|colwidth=20em}}<br />
* [[Definition:Construction all risk (CAR)]]<br />
* [[Definition:Builder's risk insurance]]<br />
* [[Definition:Delay in start-up (DSU) insurance]]<br />
* [[Definition:Engineering insurance]]<br />
* [[Definition:Third-party liability insurance]]<br />
* [[Definition:Project insurance]]<br />
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