Contractors All Risk (CAR) Insurance in South Africa

Contractors All Risk (CAR) Insurance is basically for anyone involved in construction, maintenance, installation, or repair services.

 Contractors all risk insurance
  Contractors All Risk (CAR) Insurance indemnify the insured against
the hazards that may threaten the building works whilst under construction


Contractors All Risk (CAR) Insurance and Risks/Hazards in South Africa

Contractors All Risk (CAR) Insurance typically provides an all risks cover during the construction period for the cost of physical loss or damage to building and civil works, advanced loss of profits/revenue/income, public liability, installation and constructional plant/machinery, including hired-in plant and tools, where you are responsible under Contractors Plant Hire Association (CPHA) conditions or standard conditions of a Hire Contract.

Most commonly, Contractors All Risk (CAR) insurance is underwritten on an annual policy covering all projects, as well as plant and machinery, but is also available to cover single projects for more specific extensions as well.

Common Claims: The most common claims on Contract All Risk insurance policies, involve theft of materials, materials being damaged whilst en route to site, surrounding property being damaged whilst the project is being completed, rain falling on exposed parts of existing structures, damages by storms and lightning.

Expensive Claims: Considered the most expensive claims tend to be caused by fires, liability caused by defective workmanship, injuries to third parties and damages caused to underground or overhead services.

Contractors All Risk (CAR) insurance covers all types of building and civil engineering construction including, amongst others, residential housing (both individual homes and large estates), commercial development (such as office blocks, warehouses and shopping centers) and civil infrastructure (such as roads, dams, sewerage reticulation and pipelines), indemnifying the insured against the hazards that may threaten these works whilst under construction.

DIB Solutions (Pty) Ltd have partnered with reputable underwriters and various insurance companies in order to assist our clients with appropriate Insurance cover – we can therefore also assist clients with tailor-made products (where applicable) at competitive premiums, that will best suite their individual needs. We provide a professional and personal service, as well as build long-term relationships with our clients. Contractors All Risk (CAR) Insurance offers protection against hazards that may threaten projects under construction - we will therefore discuss the various options with you.

Also note some of the important considerations for Contractors All Risk (CAR) Insurance:

  • The physical loss or damage to the insured’s property, may be influenced by the type and method of construction. Certain perils may vary pending the location (forces of nature).
  • Cover may be provided for own and hired plant & equipment, or machinery;
  • Cover for permanent or temporary works, or free material on site, or in transit from and to the site, is also available;
  • The third party cover under this policy, would typically provide cover for third party claims for bodily injury or property damage caused by the construction activities;
  • Typical hazards may include the following: Earthquake, fire, explosion, theft, burglary, landslide, collapse, floods and storms, accidental windstorms, malicious damage and more - refer to the standard terms and conditions as outlined in the policy wording;
  • Professional fees and debris removal, may also be included;
  • Certain products also provide cover for up to 12 months after completion of contractual obligations on aspects forming part of maintenance or defects liability.

Please contact us today for fast, friendly, professional advice and service!

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