For all building and engineering projects, the required type of insurance is Contractors All Risk Insurance or Erection All Risk Insurance.
Contractors All Risk Insurance
Contractor-All-Risks (CAR) Insurance policy indemnifies all insured parties involved in the project construction. It is a comprehensive all risks policy that covers loss or damage to the contract work including third party liability for accidental bodily injury or property damage in connection with the contract works, subject to policy exclusions.
Erection-All-Risks (EAR) Insurance
Erection-All-Risk (EAR) Insurance policy is similar to Contractor-All-Risk policy, in terms of parties involved and coverage. The difference is testing and commission risk is included. It is intended to cover engineering, mechanical installation works and erection of engineering projects such as power plants, refrigeration plants, electrical generator stations, overhead gantry cranes, machinery, equipment, and other fittings in factories & complexes.
The parties involved are the main contractor, nominated sub-contractor, sub-contractors, principal and/or principal bankers.
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