Its stands for CONTRACTOR ALL RISK policy is a comprehensive insurance solution specially designed to cover the diverse risks involved in construction projects. Whether it’s the building of residential complexes, commercial buildings, roads, bridges, or industrial facilities, a CAR Policy offers a safety net against a wide range of unforeseen events that can lead to physical loss, damage, or delays during the execution of a project.
A CAR Policy is an all-inclusive insurance package that protects both the contractor and the project owner from financial loss due to damage to the construction work and third-party liabilities. Unlike standard property insurance, which typically covers only specific named risks, a CAR Policy offers broader coverage on an “all risks” basis. This means it insures against all perils, except those specifically excluded.
The CAR Policy can be taken out by:
Contractors
Subcontractors
Builders
Project Owners
Financiers or Developers
Depending on the agreement, any party involved in the construction can purchase the policy, and others can be added as co-insured.
