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Contractors All Risk (CAR) - Overview

Product Codes

  • 6010 - Contractors All Risk (Main)
  • 6020 - Contractors All Risk (Alternative)
  • 6030 - Contractors All Risk (Supplementary)

Coverage Basis

Contractors All Risk insurance covers construction and erection projects against: - Physical loss or damage to the works - Third party liability - Contractor's equipment and machinery - Existing structures

Key Features

Contract Value Based

  • Coverage based on total contract value
  • Includes materials, labor, and equipment
  • Minimum and maximum limits apply

Project Duration

  • Coverage for specific project period
  • Start and completion dates required
  • Extensions available if needed

All Risks Coverage

Covers all risks of physical loss or damage except specifically excluded perils.

Coverage Components

Section I - Material Damage

What's Covered: - Works under construction - Construction materials on site - Temporary works and structures - Construction plant and equipment - Existing structures (if applicable)

Common Exclusions: - War and terrorism - Nuclear risks - Willful acts - Consequential losses - Normal wear and tear

Section II - Third Party Liability

What's Covered: - Bodily injury to third parties - Property damage to third parties - Legal defense costs

Common Exclusions: - Liability under contract - Employer's liability (covered under WC) - Professional indemnity - Product liability

Product Variations

6010 - Main CAR Product

Typical Projects: - Building construction - Civil engineering works - Infrastructure projects - General contracting

Contract Value Range: AED 5,000 - AED 300,000,000+

6020 - Alternative CAR

Usage: Specialized construction types or coverage variations

Contract Value Range: AED 500,000 - AED 16,000,000

6030 - Supplementary CAR

Usage: Additional coverage or specific project types

Contract Value Range: AED 28,000 - AED 25,000,000

Mandatory Requirements

Required Fields

  • Contract Value - Total project cost (mandatory)
  • Project Start Date - When construction begins
  • Project End Date - Expected completion date
  • Project Location - Site address
  • Project Type - Nature of construction

Optional Fields

  • Retroactive Date - For existing work (if applicable)
  • Maintenance Period - Post-completion coverage
  • Advanced Loss of Profits - Business interruption

Next Steps

Conditions & Exclusions

Standard Exclusions

What's NOT Covered:

  1. Consequential Losses
  2. Loss of profit due to delays
  3. Loss of contract
  4. Penalty clauses

  5. Liquidated damages

  6. Design Defects

  7. Faulty design (unless specifically covered)
  8. Defective materials
  9. Defective workmanship

  10. Poor workmanship

  11. Existing Defects

  12. Pre-existing damage
  13. Defects existing before policy start

  14. Work done before project start

  15. Normal Wear & Tear

  16. Gradual deterioration
  17. Atmospheric conditions

  18. Normal weathering

  19. War & Terrorism

  20. War and civil war
  21. Terrorism acts
  22. Political risks

Project Types We DON'T Insure

Declined Project Types: - Nuclear facilities or nuclear-related projects - Dam construction (requires specialized cover) - Offshore oil/gas platforms - Tunneling and underground works (needs specialist cover) - Projects in war zones or sanctioned countries

High-Risk Projects (Referral Required): - Projects >AED 500 million - Bridges and elevated structures - High-rise buildings >50 floors - Projects with hazardous materials - Projects near sensitive areas (airports, military)

Geographic Limitations

Standard Coverage: - UAE territory only

Excluded Territories: - War zones - Sanctioned countries - High-risk political areas

Contractor Requirements

We Will NOT Quote if: - Contractor not licensed in UAE - Poor financial standing - Adverse claims history (>5 claims in 3 years) - Previous project abandonments - Ongoing litigation related to construction

Project Conditions

Maximum Project Duration: - Typically 36 months maximum - Extensions subject to approval - Additional premium for delays

Contract Value Limits: - Minimum: AED 500,000 - Maximum: AED 300,000,000 (above needs reinsurance) - Sub-contracts must be declared

Maintenance Period

Defects Liability Period: - Typically 12-24 months after completion - Extended cover available - Additional premium applies - Limited to defects in workmanship

Special Conditions

Excess/Deductible: - Material Damage: Typically 1-5% of contract value (min AED 10,000) - Third Party Liability: Typically AED 25,000 - AED 100,000 - Each and every claim basis

Testing & Commissioning: - Standard testing covered - Specialized testing may need approval - Performance tests excluded

Adjacent Properties: - Existing structures: Cover available if declared - Must be valued and insured separately - Additional premium applies

Project-Specific Declinations

We Don't Cover: - Projects without proper permits - Projects with illegal/unauthorized work - Projects using banned materials - Projects not complying with UAE regulations

Critical for Portal: Validate contract value range, project type, contractor license before quote. Flag high-risk projects for underwriting review.