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CONTRACTOR’S ALL RISKS (CAR), ERECTION ALL RISKS (EAR) Insurance

Protect any damage that occurs during the construction process.

Why CAR/EAR insurance?

Construction process and erection projects require thorough protection from potential damage. Run things safely and ensure protection for your projects and investments with CAR/EAR Insurance coverage.
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Provide insurance coverage for any damage that occurs during the construction process

Material Damage:

Cover almost any sudden and unexpected material loss or damage occurring to the property insured on the site

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Third Party Liability:

When the insured becomes 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 and
  • Happening on or in the immediate vicinity of the site
  • during the Period of Cover
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Contractor’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 structures, plaza

Erection All Risks (EAR)
Covers the risks during

Installation or various and/or erection works of various infrastructures

Construction works of plants, factory, etc.

Erection works of superstructures of bridges, steel towers, etc

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  • Principal, Owner or Employer
  • Contractor
  • Sub-Contractor
  • Consultant, Engineer
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Premium Rating

Based on Total Contract Value (TCV) upon completion which includes:

I. Engineering Costs
Cost of goods or works of suppliers (i.e., material cost) including:
Tax, custom duties
Insurance cost, transportation cost
Cost of construction/ erection (i.e., labor cost)
Various other costs (e.g., commission)

II. Service Equipment Supplied by the Principal

Construction/Erection Period Works Period
Commences

  • Directly upon commencement of work or
  • At the time after the unloading of subject matter of insurance from the conveyance on the site

Expires
At the time when the works are taken over by the principal or put into service or the date specified in the schedule

Policy Term

Maximum policy term 1 year (Renewable on a yearly basis)

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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. 

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Key benefits

Wide Coverages

Contractor’s All Risks (CAR)/Erection All Risks (EAR) provide coverages for any damage that occurs during the construction process including Material Damage and Third Party Liability.

Quick Premium Payment

Choosing from a range of options, you can now make online payment quickly and effortlessly. Pay your premium digitally, or make payments by cash at our physical locations and get your policy within one week. It is comfort, safety and available 24/7 services.

24/7 Claim Services

Timesaving and convenient claims speed up the process faster and smoother. At AYA SOMPO Insurance, we are always here to providing you and your loved ones with peace of mind while we resolve your claim. Please contact us any time of the day or night 24/7 at 09-777 100 999. You can also request help online by sending us photos of the damage from your mobile device.

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