 Contractors'
All Risks (CAR) Insurance is, like Erection All Risks Insurance,
a relatively modern branch of engineering insurance. The
basic concept of CAR insurance is to offer comprehensive
and adequate protection against loss or damage in respect
of the contract works, construction plant and equipment
and/or construction machinery, as well as for third party
claims in respect of property damage or bodily injury arising
in connection with the execution of a building project.
A civil engineering contract contains certain conditions
of the responsibilities of the contractor for effecting
insurance cover. Although these conditions vary according
to the country where the works are to be carried out, the
policy has been designed to cover the risks normally specified
in the contract. The cover provided under the Material Damage
section of the policy is very wide, and in addition the
policy grants indemnity in respect of Liabilities to third
parties arising out of the undertaking of the contract.
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