Contractors’ all risks insurance for fit-outs and construction projects
By the TRS broking team24 Oct 20265 min read
The short answerContractors’ all risks covers physical loss or damage to the works during construction, and usually third-party liability arising from the project. It runs from the start of work to handover, often with a maintenance period after. Main contracts usually say who must arrange it.
What does CAR cover?
Section 1 covers the works, materials on site and, if added, plant and equipment. Section 2 covers liability to third parties for injury or property damage caused by the project.
Who arranges it?
The contract decides: sometimes the owner, more often the main contractor, naming subcontractors and the owner as insureds.
| Term | What to check |
|---|---|
| Contract value | Full value of the works, including materials supplied by others |
| Period | Start date to handover, plus maintenance period |
| Deductibles | Higher for flood and testing |
| Existing structures | Cover for the building being renovated |
Want this checked against your own policies?Talk to a broker
What is commonly excluded?
Defective design and workmanship itself, wear and tear, and loss found only at stock-taking. Some policies cover damage resulting from defects; check the defects clause.
Frequently asked questions
Does CAR cover workers’ injuries?
No. Employee injuries fall under WICA and employer’s liability insurance.
Related cover
Contractors' all risks insuranceEnd-to-end security for capital projectsMachinery breakdown insuranceMinimize the cost of mechanical failureWork injury compensation (WICA)Strict statutory compliance, absolute workforce security
General information only, not advice on any particular policy. Cover depends on the policy wording and the insurer's terms.