Construction insurance (CAR/EAR)

Construction insurance brings together several specialized policies for building and civil engineering projects, during and after the works. The Contractor's All Risks (CAR) policy covers physical damage to works in progress, materials and site equipment, as well as the contractor's third-party liability; its dedicated entry details the all-risks mechanism and accumulation on large projects. The Erection All Risks (EAR) policy is its equivalent for industrial plant, machinery and equipment installation projects. These policies run for the duration of the project. After the works, French law requires two covers. Decennial liability insurance (garantie décennale), bought by builders, covers for ten years defects and faulty workmanship that compromise the structural soundness of the works or make them unfit for purpose. Dommages-ouvrage (DO) insurance, compulsory for the project owner under the Spinetta Act of 1978, pre-finances repairs: the insured is paid quickly, without waiting for liability to be established, and the insurer then recovers from the builders through subrogation. The project owner's own liability may also be covered by a specific liability policy.