Skip to Content

contractors all risks insurance (CAR)

Contractors all risk insurance is used to cover damage to a project under construction on projects outside the United States. Contractors all risk is a nonstandard coverage that combines coverage for damage to the project and third-party liability arising out of the project into a single policy.

On This Page

Additional Information


Contractors all risk insurance typically includes three coverage parts. Part I is analogous to builders risk policies issued in connection with US construction projects. It provides coverage for damage to the project under construction and for materials and equipment that are destined for incorporation into the project, including items in storage and in transit to the site. Part II provides liability insurance for third-party bodily injury (BI) and property damage (PD) arising out of the construction operations. Part III is an optional coverage for losses arising out of a delay in start-up (DSU) due to an insured loss. This coverage is analogous to delayed opening/soft costs coverage available in conjunction with builders risk policies. Covered parties include the project owner, general contractor, subcontractors, and, in some cases, suppliers of materials and equipment. In rare instances, the design professional may also be an insured.

Related Terms


A builders risk policy is a property insurance policy that is designed to cover property in the...