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Contractors All Risk Insurance protects your company against property damage, public liability, and more.
Contractors All Risk Insurance coverage includes:
1. Physical damage caused to your client’s property.
2. Public liability – i.e. injuries to third-parties, e.g. clients, members of the public.
3. (Available as add-on) Workmen Compensation – covers injuries to your workers.
Contractors All Risk (CAR) Insurance is commonly carried by renovation or construction firms. It’s also carried by companies that frequently perform installation works. CAR Insurance will typically be required by landlords and other clients before they award contracts, as they want to be sure that businesses performing any kind of physical work have insurance coverage in case any property is damaged.
What is covered under Contractors All Risk Insurance?
Coverage under a Contractors All Risk policy is very broad. It can be customised to cover a wide range of very specific risks.
As a very general guideline, Contractors All Risk insurance covers the below:
1. Damage to principal existing property – this covers damage you cause to your client’s existing property
2. Architects, surveyors, and consultants fees – this covers fees to be paid to such consultants if you have to make repairs to damaged structures
3. Business interruption/cessation of work – this covers you if you cannot operate your business/perform your project requirements due to specific reasons like fire, etc.
4. Removal of debris – this covers the cost of removing construction debris, e.g. in the event of fire or building collapse, which can be very expensive to pay for.
5. Public liability – this covers personal injury/property damage to third-parties, e.g. members of the public or your clients
Do I need Contractors All Risk Insurance?
If your business or your employees are involved in the following, then this type of insurance is particularly critical for you:
Renovation contractors: Renovation & interior design firms will typically carry CAR insurance, as most clients will demand such coverage to be in place before they award any contracts.
Construction companies: Construction companies need to have CAR insurance due to their nature of business.
Equipment installation companies: If you install any kind of equipment in other people’s property, they will typically require you to have CAR insurance.
Engineering companies: If you perform engineering work on other people’s property, they will typically require you to have CAR insurance.
How much Contractors All Risk Insurance coverage do I need?
The coverage amount depends on your annual revenue, and also depends on your contract requirements. Depending on the size of your contracts, your clients may request you to carry anywhere between $1 million to $5 million in Public Liability coverage.
How much does a Contractors All Risk Insurance policy cost in Singapore?
Contractors All Risk insurance starts from as low as $83/month.