Contractor's All Risks (CAR) Insurance

What is Contractor's All Risks (CAR) Insurance?

India is witnessing rapid industrialization, with continuous infrastructure development projects such as airports, bridges, dams, tunnels, offshore structures, refineries, reservoirs, pipelines, power stations, factories, and hospitals. Given the significant investments involved, insurance coverage during the construction phase is crucial.

Contractor's All Risks (CAR) Insurance is specifically designed to provide financial protection during the construction phase. It is issued for the project duration as a "one-time" policy, covering both contractors and project principals involved in civil engineering projects, including the construction of buildings, bridges, factories, and power stations.

What Does the CAR Policy Cover?

The CAR policy offers "All Risks" coverage, meaning it indemnifies against any sudden and unforeseen loss or damage to the insured property at the construction site—except for risks explicitly excluded under the policy. This ensures comprehensive protection for ongoing construction projects against unexpected incidents.