Think of it this way: Contractors All Risk insurance (CAR insurance) follows the project you are building, including materials and works at the site. Contractor’s Plant and Machinery (CPM) follows the machines you use to build the project. Both may sit on the same site, but they respond to different kinds of losses.
CAR (Contractors All Risk Insurance)
- What It Is For: CAR insurance covers damage to contract works while construction is ongoing, often with an option to include third‑party liability arising from site operations.
- Typical Moments It Responds To: Accidental damage during construction activity, site fire, collapse during works, damage during testing and commissioning, when included.
- Common Confusion: It is not meant to cover employee injury benefits. Labour injury is typically handled under workmen compensation.
CPM (Contractor’s Plant and Machinery Insurance)
- What It Is For: Contractor’s plant and machinery insurance is specifically designed to cover construction equipment such as excavators, loaders, cranes, rollers, compressors, and other construction equipment.
- Typical Moments It Responds To: Accidental external damage, theft of insured machinery, damage during on‑site operations, and, in some cases, hired‑in plant if included.
- Practical Note: If your machines move across projects, CPM is often structured to cover equipment across multiple sites within the defined territory.
Quick Decision Rule:
- If it is part of the structure you are building, think CAR insurance.
- If it is the machine doing the building, think CPM insurance.
Contractors All Risk insurance (CAR insurance) protects construction works, while CPM safeguards machinery. Together, they reduce disputes, secure investments, and ensure contractors maintain resilience against diverse project risks and losses.
