Construction all risk

We regularly advise both insurers and their insured clients on CAR insurance claims and policy wordings on major projects globally.

Construction all risk

During the construction of any building, civil or infrastructure works, there is a risk of loss or damage to property.

Construction All Risk (“CAR”) insurance comes in many different forms including Contractors All Risk, Erection All Risk, Plant All Risk, Industry All Risk or perhaps as part of a wider Combined All Risk or Owner Controlled Insurance Programme.  Whilst it is sometimes described as a non-standard form of construction insurance, it is commonly used on large infrastructure projects and in the offshore oil industry, where the WELCAR offshore construction project policy wording is well known.

The level of cover provided often varies and disputes commonly arise as to whether there has been loss or physical damage, rather than the existence of a defect, or whether policy exclusion applies to deny or limit cover.

The types of risks often covered under CAR policies include (but are not limited to) loss or damage arising from an occurrence of flood, wind, earthquake, water damage or construction faults.

As international construction and insurance specialists, we regularly advise both insurers and their insured clients on CAR insurance claims and policy wordings.  We have advised on major projects both in the United Kingdom, including on Crossrail, and internationally, where we have advised on projects in the Middle East and Central Asia amongst others.

Our Construction all risk Experience

Major contractor regarding an insurance dispute

Representing a major contractor regarding an insurance dispute which turned on the question of whether the loss suffered was insured under the CAR policy or the PI policy.

Refurbished building at Churchill Place, Canary Wharf, UK

Acting for a German design and build contractor in relation to a claim arising from sun reflection from the River Thames and resultant heat build up in a refurbished building at Churchill Place, Canary Wharf. Our role included negotiation with our client’s PI and CAR insurers on coverage. Claim value of £5m was on negotiation covered by the contractor’s CAR insurance policy.

Crossrail, UK

Advising in relation to damage that occurred during construction of the tunnels and platforms for the Crossrail project, now known as the Elizabeth Line, which was at the time the largest construction project in Europe.

Hydroelectric Dam Project, Central Asia

Advising in relation to the construction of a hydroelectric dam project in Central Asia, which when complete will be one of the highest rock fill dams in the world, and damage which occurred to the foundation slabs due to unknown and unforeseen ground conditions.

New Harbour Construction, UAE

Advising in respect of damage due to design an workmanship issues during construction of a new maintenance harbour in the United Arab Emirates.

New shipping container terminal, UK

Acting in relation to damage to tubular and sheet piles during the construction of a new £400 million shipping container terminal project caused as a result of design and ground condition issues.