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.