Contractors / Erection All Risk Insurance

Policy Overview

Contract All Risks (CAR) and Erection All Risks (EAR) insurances provides cover for accidental physical loss or damage to the works under construction (Section1) from damage such as fire, storm, lightening, malicious damage, impact, theft on site and/or stored remotely and includes limited cover whilst in transit. Both policies extend to third party liability (Section 2) for personal injury and/or property damage to unrelated parties and include the time limited maintenance period required to rectify defects, errors and emissions. CAR cover relates to building works whilst EAR covers the assembly of plant and machinery.

The policy is generally purchased by construction firms, builders and associated trades such as plumbers, electricians and engineering firms however can also be purchased on a principally controlled basis with the owner of the project insuring on behalf of the contractor and their associated trades. This is common with Owner Builders.

The policy can be extended to include cover such as:

• Existing structure covering that portion of the improvement on the site which aren’t being worked upon, yet could be the subject of a loss;
• Materials supplied by the owner / principal,
• Off site storage of materials,
• Transit,
• Contractors tools and equipment including onsite unregistered mobile plant.
• Delay in start up (DSU) and Advanced Loss of Profits (ALop) covering the financial loss associated with the delays at the commencement and completion of the project.

Major Exclusions:

• Cessation of works and abandonment,
• All cost incurred in gradual deterioration,
• Atmospheric conditions such as rust, oxidisation, mildew and insects such as termites, moths and vermin,
• Breakdown,
• Inventory shortage,
• Cash and securities,
• Fines and Penalties,
• Piling foundation and retaining walls unless specifically required,
• Asbestos,
• Computers and Electronic data.

The information provided on this page that may have been implied is General Advice only and does not take into consideration your specific needs, risk appetite or financial requirements. Please contact our office to discuss and review your needs and the appropriate financial product best suited to meet your requirements . Before purchasing any financial product, you should always read the Product Disclosure Statement to ensure the product is suitable for your needs.