Contractors all risks (CAR)

The CAR policy belongs to the construction insurance family presented as a whole by the entry bearing that name; this one goes deeper into the policy's own mechanics, its all-risks basis, and the accumulation issues that arise on large projects. Contractors all risks insurance covers physical damage affecting a structure under construction, as well as materials and equipment on site, from the start of works to handover. It operates on an all-risks basis, meaning any accidental damage is covered except what is expressly excluded, making it a broad cover suited to the diversity of a construction site's hazards: fire, storm, flood, collapse, theft, defective workmanship within limits. Generally bought by the project owner or main contractor on behalf of all parties, it avoids liability conflicts between trades. For large infrastructure projects, the underwriter sizes its limit and tracks the accumulation of sums insured, especially as a long project runs through several seasons of climate hazards. It is often complemented by advance loss of profits cover for delayed commissioning.