Construction insurance works best when the paperwork matches the site reality. Many disputes start with small mismatches like the wrong project period, missed testing and commissioning, or incomplete equipment lists. Contractors All Risk insurance (CAR insurance) typically runs from the start of work and stays active until handover, and it can also be extended for testing or maintenance if that’s part of your scope.
Bite-Sized Checklist For Construction Industry:
- Project Basics: Correct site address, scope, start date, and expected handover date.
- Sum Insured Logic: Contract value declared realistically, including materials and major cost changes as the project evolves.
- Policy Period: Covers the full construction window, including testing and commissioning when applicable. Request extensions before expiry if timelines slip.
- Who Is Insured: Principal and contractor named correctly, confirm subcontractor inclusion if the contract structure needs it.
- Existing Property Exposure: If you’re working near or on existing structures, confirm how the policy treats surrounding property and existing property.
- Equipment Plan: Identify what should be under CAR versus a separate CPM policy for contractor plant and machinery.
- Worker Injury: Keep separate workmen compensation in place for labour, CAR is not designed as an employee injury cover.
- Security And Storage: Fencing, entry control, night guarding, equipment parking area, and key control for machines.
- Document Discipline: Keep daily progress photos, material inward records, equipment list, operator details, and incident log maintained in one folder.
Pro Tip For Accuracy: When you extend timelines, extend insurance first. A policy that expires mid-project is one of the fastest ways to convert a real loss into a rejected claim.
Contractors All Risk insurance (CAR insurance) ensures construction projects remain protected from start to handover. With accurate documentation, extensions, and coverage discipline, contractors can reduce disputes, safeguard investments, and secure smoother claim settlements.
