Contractors All-Risk (CAR) Insurance
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What Is Contractors All-Risk Insurance?
Construction projects face risks at every stage. Fire, flooding, theft, accidental damage or a third-party injury can delay completion and create significant financial losses.
Contractors All-Risk (CAR) Insurance protects contractors, subcontractors, developers and property owners against accidental loss or damage during construction. Depending on the policy selected, cover may include the contract works, construction materials, machinery installations and third-party liability.
Core Coverage Options
Contract Works
Protects the permanent and temporary works forming part of the construction project.
- Fire, storm and flood damage
- Accidental damage during construction
- Construction materials on-site
- Materials while in transit, if specifically included
- Temporary structures and works
Mechanical and Electrical Works
Designed for contractors installing, repairing or commissioning machinery, electrical systems and plant equipment.
- Accidental installation damage
- Damage during testing and commissioning
- Machinery and equipment awaiting installation
- Associated mechanical or electrical works
Public Liability
Protects you against legal liability arising from accidental bodily injury or property damage suffered by third parties during the project.
- Legal defence costs
- Third-party property damage
- Accidental bodily injury
- Compensation or settlement costs
Why Choose SimplyCovered?
SimplyCovered helps contractors and project owners find suitable CAR Insurance without unnecessary complexity. We assist you in arranging cover based on the project’s value, duration, activities and specific risks.
CAR Insurance may also be required by clients, banks, developers or funding institutions before construction begins.
Removal of Debris
Covers reasonable costs associated with removing damaged material and clearing the site following an insured event.
Professional Fees
May cover the fees of architects, engineers and other professionals required to assess or reinstate insured damage.
SASRIA Cover
Optional or included protection, where applicable, against risks such as riots, strikes, public disorder and civil commotion in South Africa.
Escalation Cover
Allows for increases in labour and material costs during the construction period, subject to the policy terms and selected limits.
What Is Generally Not Covered?
CAR policies typically exclude certain losses. The exact exclusions will depend on the insurer and policy wording.
Defective Workmanship or Design
The cost of correcting defective work, materials or design may be excluded, although resulting damage may be covered in certain circumstances.
Wear and Tear
Gradual deterioration, corrosion, rust and normal maintenance costs are generally not covered.
Unexplained or Unsecured Theft
Theft may be excluded where there is no evidence of forcible or violent entry, or where required security measures were not followed.
Existing Structures
Buildings or structures that existed before construction started are usually excluded unless specifically declared and included.
Consequential Loss
Penalties, loss of income and delays arising from an insured event are generally excluded unless additional cover has been arranged.
What Determines Your Premium?
Contract Value
The total value of the project, including materials, labour, equipment and other declared costs.
Type of Work
The nature of the construction activity, including excavation, demolition, roofing, civil works or mechanical installation.
Project Duration
The period from the start of construction until completion and handover, including any applicable maintenance period.
Site Location
The site’s exposure to flooding, theft, fire, nearby properties and other environmental risks.
Claims History
Previous losses involving the contractor, principal or similar projects may affect the premium and policy terms.
Excess
The amount you must contribute toward an approved claim. Selecting a higher excess may reduce the premium.
Frequently Asked Questions
Who needs Contractors All-Risk Insurance?
CAR Insurance may be required by building contractors, subcontractors, developers, property owners and project principals. The construction contract will usually specify who is responsible for arranging the cover.
Can I insure a single project?
Yes. A once-off policy can cover a specific construction project for its declared duration.
Can I cover multiple projects?
Yes. Contractors undertaking several projects may qualify for an annual policy covering projects commenced during the insurance period, subject to agreed limits and declarations.
When should the policy begin?
Cover should generally be in place before materials arrive on-site or construction work begins. Arranging insurance after the project has started may create gaps in cover.
Are tools and construction equipment included?
Portable tools, plant and machinery are not always automatically covered. These items may need to be declared or insured under separate plant, equipment or tools cover.
How are claims handled?
Claims should be reported as soon as possible, supported by photographs, invoices, incident reports and other relevant documentation. SimplyCovered assists with the submission and progression of claims, while assessment and settlement remain subject to the insurer’s policy terms and claims process.