Construction All Risk or Contractor’s All Risk (CAR) insurance is a specialized insurance policy that offers broad protection for construction projects, covering risks associated with both property damage and third-party liability. This type of insurance is designed for contractors, builders, and property developers, providing coverage for unforeseen events like fire, natural disasters, theft, accidental damage, and even damages caused by human error during construction. Additionally, CAR insurance can cover third-party liability, protecting businesses from claims related to injury or property damage suffered by others due to construction activities.
In Singapore, where urban development and infrastructure projects are continually on the rise, CAR insurance is critical for businesses in the construction industry. Large-scale projects involve significant investment in materials, equipment, and labour, making them financially vulnerable to unexpected losses. CAR insurance helps ensure that businesses can recover quickly from costly incidents, maintain cash flow, and complete projects on time.
Here are some of the primary industries that typically require CAR insurance:
- Construction Companies and General Contractors: For companies involved in building residential, commercial, and industrial properties, CAR insurance protects against damage to the structure, materials, and equipment used on-site.
- Property Developers: Developers involved in major construction projects, from skyscrapers to shopping complexes, benefit from CAR insurance, which covers potential risks and liabilities tied to project delays, damage, or injuries.
- Engineering Firms: Engineering companies handling specialized installations or structural modifications use CAR insurance to cover risks tied to complex engineering tasks, often involving heavy machinery and equipment.
- Civil and Infrastructure Contractors: Companies responsible for public infrastructure projects, like roads, bridges, and tunnels, need CAR insurance due to the higher risk and potential liabilities associated with such large-scale, public-facing projects.
- Subcontractors: Subcontractors involved in various parts of the construction process, such as plumbing, electrical work, or finishing, often require CAR insurance to protect against damages to materials or third-party liabilities specific to their tasks.
- Renovation and Interior Design Firms: Companies focused on renovations or interior design work within commercial or residential buildings also need CAR insurance to cover accidental damage to existing structures or fixtures.
- Manufacturing and Industrial Construction: Businesses constructing or modifying manufacturing plants or warehouses rely on CAR insurance to safeguard against costly interruptions and material losses.
