Contract Works Protection
Cover may protect permanent and temporary construction works, materials and related property against insured accidental loss or damage.
Construction risk protection
Contractors All Risk Insurance for South African Construction Projects
Contractors All Risk insurance, commonly called C.A.R. insurance, helps protect construction projects against accidental physical damage and selected third-party liability risks during the construction period.
- Protection for accidental damage to contract works
- Cover for eligible third-party liability claims
- Options for construction plant and equipment
- Guidance from experienced insurance consultants
Cover, limits, exclusions and eligibility depend on the selected insurer, policy wording and the specific risks associated with each construction project.
Protection throughout the construction period
Cover can be arranged around the risks associated with a particular construction project.
Understanding C.A.R. insurance
What is Contractors All Risk insurance?
Contractors All Risk insurance, commonly known as C.A.R. insurance, is designed to help protect construction projects against selected accidental loss, physical damage and liability risks.
Depending on the policy, cover may include the contract works, construction materials, temporary structures, plant and equipment, and certain third-party liability exposures.
C.A.R. insurance is commonly considered by contractors, developers, employers and other parties with a financial interest in a project. The insured parties named on the policy will depend on the contract and the insurer's requirements.
What does Contractors All Risk insurance cover?
Cover differs between insurers and projects, but it may include accidental damage to works in progress, damage to construction materials and selected third-party liability claims.
Third-Party Liability
Selected policies may include cover for legal liability arising from accidental injury to third parties or damage to third-party property.
Project-Specific Cover
The policy can be structured around the type, value, duration and risk profile of the construction project.
Contractors All Risk policies differ between insurers. Cover is subject to the policy wording, declared project information, limits, deductibles, exclusions and insurer approval.
Construction guarantees
Types of Construction Guarantees and Bonds
Construction guarantees provide financial security when a contractor must meet specific tender, payment or performance obligations under a contract.
Bid or Tender Bond
Provides the employer with financial protection if the successful bidder cannot or does not proceed with the awarded contract.
Advance Payment Guarantee
Protects an employer when money is paid to a contractor before work begins. The guaranteed amount may reduce as certified work is completed.
Performance Guarantee
Provides security against the contractor failing to meet contractual obligations. The required amount depends on the contract and guarantee wording.
Retention Guarantee
May replace cash retention held by the employer, helping the contractor preserve working capital while still providing security against defects or default.
Temporary Import Guarantee
May support the temporary import of construction plant or machinery required for projects outside South Africa.
What is the difference between C.A.R. insurance and a construction guarantee?
Contractors All Risk insurance is intended to cover selected accidental loss, damage and liability risks. A construction guarantee provides financial security when a contractor fails to meet a specified contractual obligation.
Which guarantee does a construction project need?
The required guarantee depends on the tender documents, building contract, employer requirements, project value and the contractor's financial position.
Guarantee availability, values and terms remain subject to underwriting, financial assessment, contract requirements and the selected provider's approval.
Why Contractors All Risk Insurance?
Benefits of Contractors All Risk Insurance
Contractors All Risk insurance helps construction businesses manage financial exposure while projects are underway. The exact protection depends on the insurer, policy wording and the risks associated with each individual project.
Financial Protection
Helps reduce the financial impact of accidental damage to construction works during the insured period.
Project Continuity
Insurance may help projects recover more quickly after insured incidents, reducing disruption to construction programmes.
Contract Compliance
Many construction contracts require evidence of suitable Contractors All Risk insurance before work begins.
Risk Management
Provides an important layer of protection alongside sound construction planning, safety management and contractual controls.
Is Contractors All Risk insurance compulsory?
Not every construction project is legally required to carry Contractors All Risk insurance. However, many employers, developers, financiers and principal contractors require it as part of the contractual conditions before work can begin.
Insurance assistance
Get help with your Contractors All Risk requirements
Consult by Momentum can help you assess your construction project, understand potential risks and explore suitable C.A.R. insurance and guarantee options.
Consult
by Momentum
Consult by Momentum
Leads 2 Business users can access contractor insurance assistance from eligible Project and Tender View pages. This allows relevant project or tender details to be included when requesting guidance or a quotation.
Insurance availability, pricing and acceptance remain subject to underwriting and the selected provider's terms.
Speak to an insurance consultant
Share your construction project or tender requirements and request assistance with available insurance and guarantee solutions.
Emailinsurance@consultmomentum.co.zaLeads 2 Business provides access to the consultation channel and does not itself underwrite insurance.
Construction insurance assistance
Request help with Contractors All Risk insurance
Speak to Consult by Momentum about your construction project, insurance requirements and available guarantee or surety options.
- Discuss your construction project or tender
- Explore suitable C.A.R. insurance options
- Ask about construction guarantees and bonds
Insurance availability, premiums, limits and acceptance remain subject to underwriting, policy terms and provider approval.
Project-specific insurance guidance
Share the relevant project or tender details so the consultant can assess your requirements more accurately.