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What is Contractor’s All Risks (CAR)?

Constructor’s All Risks (CAR)
Covers the risks during
  • Construction works of buildings such as office, factory, shopping mall, dwelling use
  • Construction works of civil engineering such as construction of road, railway, quay, tunnel, dam, floodgate, airport, underground plaza

What is Erection All Risks (EAR)?

Erection All Risks (EAR)
Covers the risks during
  • Installation and erection works of various machinery
  • Construction works of plant, factory, etc.
  • Erection works of superstructures of bridge, steel tower, etc.

What is the coverage?

Provide cover for any damage that occurs during the construction process.  
• Main Coverage - Material Damage 
Covers almost any sudden and unexpected material loss or damage occurring to the property insured on the site 
• Additional Coverage - Third Party Liability 
When the Insured shall become legally liable to pay as damages consequent upon  
a) accidental bodily injury to or illness of third parties (whether fatal or not)  
b) accidental loss of or damage to property belonging to third parties
• occurring in direct connection with the construction or erection of the items insured under Section I  
• happening on or in the immediate vicinity

Who are the insured?

In the name of the contractor, the principal or joint names depending on the project requirement. All the concerned parties are: 
• Principal, Owner or Employer 
• Contractor 
• Sub-contractor 
• Consultant, Engineer 

How to calculate the sum insured value for Contractors' All Risks (CAR) and Erection All Risks (EAR)?

Sum Insured value will be calculated based on total contract value (TCV) upon completion which includes 
• Engineering costs - Cost of goods or works of suppliers (i.e. material cost) including tax, custom duties, insurance cost and transportation cost,  
• Cost of construction/erection (i.e. labor cost)  
• Various other costs (e.g. commission) and  
• Service Equipment Supplied by the Principal 

What kind of business needs to take Erection All Risks coverage?  

High risky industries such as installation and erection work of various machinery, construction works of plant, factory, etc., erection works of superstructures of bridge, steel tower needs to take Erection All Risks insurance coverage to provide losses from any damages that occurs during the construction process. 

What kind of business owner needs to take coverage for Contractors’ All Risks insurance?  

Construction works of buildings such as office, factory, shopping mall, dwelling use and construction works of civil engineering such as construction of road, railway, quay, tunnel, dam, floodgate, airport, underground structures, plaza needs to take Contractors’ All Risks insurance to protect against losses from any damages that occurs during the construction process.