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🏗️ '''Contractor's all risks (CAR) insurance''' is a specialist [[Definition:Property insurance | property insurance]] product that provides broad coverage for physical loss of or damage to construction works, including the permanent and temporary works, materials on site, and construction plant and equipment, during the course of a building or civil engineering project. Positioned within the [[Definition:Engineering insurance | engineering]] and [[Definition:Construction insurance | construction insurance]] class, CAR policies typically operate on an [[Definition:All risks | all-risks]] basis — meaning they cover any fortuitous loss not specifically excluded — rather than on a named-perils basis. The product is a cornerstone of construction-phase risk transfer worldwide and is required by most project finance agreements, government procurement contracts, and [[Definition:Joint venture | joint venture]] arrangements.

🔧 A standard CAR policy is structured around several sections that can be combined or purchased separately depending on project requirements. Section 1 covers material damage to the contract works, often including an extended maintenance or defects liability period after project completion. Section 2 provides [[Definition:Third-party liability insurance | third-party liability]] cover for bodily injury or property damage arising from the construction activities. Additional sections or endorsements may address removal of debris, professional fees for redesign after an insured loss, expediting expenses, and [[Definition:Delay in start-up (DSU) insurance | delay in start-up]] consequential losses. Policies are typically arranged for the full contract value on a [[Definition:Reinstatement value | reinstatement]] basis. [[Definition:Underwriting | Underwriting]] considers project type, construction methodology, geographic location (including natural catastrophe exposure), contractor experience, and the [[Definition:Risk management | risk management]] measures in place. In the [[Definition:Lloyd's of London | Lloyd's]] market and across London, Singapore, and Dubai specialty hubs, CAR risks are frequently placed on a [[Definition:Subscription market | subscription]] basis with multiple [[Definition:Underwriter | underwriters]] sharing the line.

📊 Large-scale infrastructure investment globally — from transportation networks in Asia to renewable energy installations in Europe and urban development in the Middle East — has elevated CAR insurance to a strategically significant product class. [[Definition:Reinsurer | Reinsurers]] closely monitor accumulation risk from multiple CAR policies exposed to the same [[Definition:Natural catastrophe | natural catastrophe]] zone, and the emergence of [[Definition:Mega-project | mega-projects]] with contract values in the billions has pushed the boundaries of available [[Definition:Insurance capacity | capacity]]. For [[Definition:Insurance broker | brokers]] and [[Definition:Managing general agent (MGA) | MGAs]] specializing in construction, designing bespoke CAR programs that coordinate with [[Definition:Professional indemnity insurance | professional indemnity]], [[Definition:Workers' compensation insurance | workers' compensation]], and [[Definition:Environmental liability insurance | environmental liability]] policies is a core advisory function. Increasingly, [[Definition:Insurtech | insurtech]] solutions incorporating satellite imagery, drone inspections, and IoT-connected site monitoring are being integrated into CAR underwriting and [[Definition:Loss prevention | loss prevention]], allowing underwriters to price risk more accurately and respond to claims more swiftly.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Engineering insurance]]
* [[Definition:Erection all risks (EAR) insurance]]
* [[Definition:Delay in start-up (DSU) insurance]]
* [[Definition:Construction insurance]]
* [[Definition:All risks]]
* [[Definition:Project insurance]]
{{Div col end}}

Definition:Contractor's all risks (CAR) insurance - Revision history

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