Is your CAR in order?
From the get-go, construction sites face a multitude of obstacles that can cost contractors and all those involved both time and money if they don’t have reliable resources in place. Ensuring you have the correct cover for your projects will safeguard you, your team and your project from any unnecessary loss following an accident.
Our Contractors All Risk insurance covers all types of building and civil engineering construction like residential housing (both individual homes and large estates), commercial development (such as office blocks, warehouses and shopping centres) and civil infrastructure (such as roads, dams, sewerage reticulation and pipelines), indemnifying the insured against the hazards that may threaten these works whilst under construction.
Still not sure why you need a Contractor’s All Risk insurance policy? We asked senior underwriter at Consort Technical Underwriters, Kobus van Niekerk, to answer these frequently asked questions about Contractor’s All Risk insurance:
Why is CAR insurance necessary?
CAR insurance indemnifies the owner and/or contractor for the physical loss or damage to the contract works during an accident. The insurance can be structured to cover repair or redo costs, anything that was damaged or destroyed as a result of an accident.
Say for instance strong winds cause damage to your project. Structural damage to one building was caused as a result of a crane that collapsed, and the wind unroofed another building. Wind seems unlikely, but last year there were numerous cases where near gale force like winds caused damage to many houses, offices, shopping centres and construction sites.
Who will foot the bill for the damage to your site?
Without cover the contractor will be liable to pay for all damages, replacement of equipment and materials. This can add up to a hefty amount that can bankrupt a project or company.
What is covered under a CAR policy?
Any loss of or damage to structures, materials or equipment on site that’s due to be or already incorporated into the contract, is covered under a CAR policy.
What’s not covered under a CAR policy?
Sometime the words “all risks” can be misconstrued as a Contractors All Risks policy does have exceptions and exclusions, a few of which are noted here. Items such as (but not limited to) Contractors / Sub-Contractors Plant Tools and Equipment (including Hired-In Plant) are not covered under the CAR policy. Defective Workmanship and / or Design is also excluded. Theft of construction materials would generally be limited.
Also remember that SASRIA is a separate cover provided for in conjunction with the CAR policy. SASRIA risks are not covered under a CAR policy.
It’s important to consult with your Financial Service Provider / Broker to get clarity on these important issues.
A Contract Works Policy is broad, but that doesn’t mean it covers absolutely everything. If you’re unsure of what is covered and what is not covered by your CAR insurance, please contact your broker and we can help you go through your policy and clarify any questions or concerns.
For more information on our Contractor’s All Risk insurance, to get a quote or renew please contact your broker today.