The owner of a contract generally insists on the contractor having a Contractors All Risks (CAR) insurance cover for the project in hand. This insurance covers the Insured against accidental losses occurring during the execution of the project.

Risks insured include fire, lightning, explosions, crashing aircraft, flood, inundation, by the sea, windstorm, earthquake, burglary as well as theft, and legal liabilities to third parties. Contractor’s plant and equipment, wages payable and debris removal also may be covered.

For the erection of steel structures, the need to provide insurance coverage is normally catered for by an Erection All Risks Policy (EAR).