Contractors All Risk (CAR) Insurance
Specifically tailored to cover civil construction works, permanent or temporary building setups, materials in storage, and third-party liabilities during construction.
Understanding the Advisory Scope
Purpose & Scope
Provides all-risks physical cover for civil engineering contracts where civil works comprise more than 50% of the contract value.
Why It Is Needed
Civil construction projects face high exposure to structural collapses, weather catastrophes, material theft, and legal third-party liability claims that traditional commercial covers do not protect.
Who Should Purchase
- Real Estate Developers & Promoters
- EPC Infrastructure Builders
- Government Municipal Agencies & Road Authorities
- Sub-contractors & Civil Engineering Partners
Suitable Applications & Sectors
What the Policy Protects
Fire & Lightning
Protects against sudden fire breakouts, electrical short-circuits, and atmospheric discharges.
Flood & Inundation
Covers water ingress, river overflows, cloudbursts, and heavy site inundation.
Earthquake & Landslip
Protects civil works from structural damage caused by earthquakes or site landslips.
Burglary & Vandalism
Covers theft of building materials, sanitary fittings, and malicious damage.
Human Errors
Covers collapse or physical damages resulting from operator mistakes or site negligence.
Collapses
Covers sudden collapse of scaffolding, shuttering, or permanent structural components.
Optional Extensions Available
Third Party Liability (TPL) Extension
Covers legal liabilities for third-party bodily injuries or property damage arising out of construction activities.
Removal of Debris
Reimburses the cost of clearing site debris following an accidental damage or collapse to resume work quickly.
Escalation Clause
Allows automatic increase in Sum Insured (up to 15%) to absorb inflationary construction material cost rises.
Express Freight
Covers additional costs of rapid express transit for replacement parts to minimize project delays.
Air Freight Extension
Reimburses the premium cost of air-shipping crucial parts or replacement machinery from international suppliers.
Additional Customs Duty
Covers unexpected customs import duties levied on replacement machinery parts brought into India.
Cross Liability Cover
Treats each contractor/sub-contractor as a separate entity, covering liabilities between different parties on site.
Maintenance Period Cover
Extends coverage (Limited or Extended) for losses occurring during the post-construction maintenance/defect liability stage.
Transit Cover Extension
Protects construction materials and equipment during initial domestic inland transit to the project site.
Major Policy Exclusions
Equipment Breakdowns
Internal electrical or mechanical breakdown of plant fleet (requires CPM policy).
Liquidated Damages
Financial penalties, fines, or loss of profits due to delay in handover.
Defective Design
Rebuilding costs resulting from faulty plans, drawing errors, or poor quality materials.
Blueprints & Cash
Loss of blueprints, currency, securities, or financial documents.
Structured Claims Settlement Pipeline
Required Documents
- Duly filled and signed CAR Claim Form
- Joint inspection reports and surveyor findings
- Police First Information Report (FIR) in case of theft/vandalism
- Original bills, invoices, contract agreement copies, and BoQ (Bills of Quantities)
BP & AF Claims Advantage
Take comprehensive date-stamped photographs immediately after any site incident. Secure internal telemetry/datalogger logs before components are dismantled. Our specialist advocates handle direct negotiation with the insurers to ensure minimal deductibles and zero processing delay.
Claim Settlement Steps
Immediate Intimation
Notify BP & AF and the insurer within 24 hours of the loss.
Surveyor Deputation
An independent IRDAI surveyor inspects the site and audits damaged assets.
Documentation & Repair
Submit bills, invoices, and repair estimates to the surveyor for approval.
Claim Settlement
Upon final surveyor report approval, the insurer disburses the claim payout.
Frequently Asked Questions
Request a Placement Proposal
Provide your business parameters below. An Engineering Risk Advisor will structure custom placement slips across top underwriters.
Related Engineering Coverages
Most operations require integrated policies. Explore complementary engineering risk programmes.
Contractors Plant & Machinery (CPM) Insurance
Comprehensive all-risk coverage for heavy construction equipment, plant fleet, cranes, and tools operating at construction sites.
Erection All Risk (EAR) Insurance
Specifically designed to cover assembly, testing, and commissioning of electrical, mechanical, and industrial plant setups.