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🏗️ '''Contractor's all risks insurance (CAR)''' is a specialized [[Definition:Property insurance | property insurance]] product that covers physical loss or damage to construction works, materials, and equipment during the course of a building or civil engineering project. Written on an [[Definition:All-risks policy | all-risks]] basis, CAR responds to any peril not specifically [[Definition:Exclusion | excluded]] by the [[Definition:Policy wording | policy wording]] — a structure that provides broad protection against fire, storm, flood, theft, collapse, and accidental damage throughout the construction period and, in many cases, during a defined maintenance window after project handover.

🔧 A standard CAR policy typically comprises several sections. Section I covers the contract works themselves, including permanent and temporary works, materials on-site, and materials in transit. Section II provides [[Definition:Third-party liability insurance | third-party liability]] coverage for bodily injury and property damage arising from construction activities. Some policies extend to cover existing structures — particularly important in renovation projects — and to include [[Definition:Delay in start-up insurance (DSU) | delay in start-up]] coverage when project completion timelines carry financial consequences. [[Definition:Underwriter | Underwriters]] price the policy based on the total project value, construction method, location exposures, duration, and the contractor's track record. The [[Definition:Sum insured | sum insured]] typically reflects the full contract value, and [[Definition:Deductible | deductibles]] are adjusted to the scale and risk profile of the project.

🌍 CAR insurance is a cornerstone of international construction and engineering risk placement, with significant volumes flowing through markets like [[Definition:Lloyd's of London | Lloyd's of London]] and large global [[Definition:Reinsurance | reinsurers]]. For project owners, lenders, and contractors alike, a well-structured CAR program provides confidence that a catastrophic event will not derail the financial viability of a development. It also satisfies the insurance requirements embedded in most standard construction contracts, such as FIDIC and JCT forms. In an era of increasingly complex infrastructure projects and heightened [[Definition:Natural catastrophe (nat cat) | natural catastrophe]] exposures, CAR underwriting demands deep technical expertise in both construction methodology and risk engineering.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:All-risks policy]]
* [[Definition:Builder's risk insurance]]
* [[Definition:Delay in start-up insurance (DSU)]]
* [[Definition:Engineering insurance]]
* [[Definition:Contractor insurance]]
* [[Definition:Third-party liability insurance]]
{{Div col end}}

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

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