Insurance Products
Contractors All Risks (CAR) and Erection All Risks (EAR)
Contractors all risks (CAR) and erection all risks (EAR) policies cover all construction and erection activities, materials and third party liability on site for the duration of the project.
At a glance
- Status
- Optional
- Core cover
- 5 sections
- Quote turnaround
- Same business day
An all-risks basis means every sudden and unforeseen loss not expressly excluded is covered. Fire, flood, storm, theft, collapse, scaffold failure and workmanship-related damage on site fall within scope. These policies are commonly mandated in tender specifications, with the employer often required to be named as an additional insured.
The policy is written on the project value, which should include the contract sum, materials supplied by the employer and site facilities. Under-declaring creates the risk of proportional settlement at claim time. The policy period should cover the construction schedule plus the maintenance period.
Third party liability cover is an integral part of CAR/EAR. Damage caused by site activities to neighbouring buildings, infrastructure or passers-by is paid from this section. Keeping the limit high is critical for urban projects and works requiring deep excavation.
What Is Covered
- Construction/erection all risks
- Covers all works and materials on site against perils not expressly excluded.
- Natural perils
- Covers flood, storm, landslide and earthquake damage to the project.
- Third party liability
- Covers damage caused to neighbouring structures, infrastructure and third parties.
- Plant and site facilities
- Covers cranes, construction machinery, formwork, scaffolding and site buildings.
- Maintenance period cover
- Covers damage arising during the maintenance period after provisional acceptance.
Who Is It For?
- Contractors and subcontractors
- Owners of residential, commercial and infrastructure projects
- Businesses installing industrial plant and machinery
- Contractors working on public tenders
What Is Not Covered
- Direct loss from design and engineering error unless extended
- Contractual penalties, delay damages and loss of profit
- Normal wear, corrosion and defective quality
- Loss of documents and cash
What Affects the Price
Premiums vary between insurers according to the factors below. We compare 27 partner insurers to find the best fit for your profile.
- Total project value and construction period
- Structure type, number of storeys and excavation depth
- Site location and exposure to natural perils
- Requested third party liability limit
Frequently Asked Questions
What is the difference between CAR and EAR?
CAR covers civil construction works; EAR covers plant and machinery erection. Mixed projects combine both.
How is the policy period set?
From first delivery of materials to site until provisional acceptance, plus the maintenance period in the contract.
Can the employer be named on the policy?
Yes. As tender documents often require, the employer and financing institution can be added as additional insureds.
Are subcontractor losses covered?
They are covered where subcontractors are named as insureds. This must be clarified when the policy is issued.