CAR / EAR Engineering Insurance
CAR and EAR are project insurance policies that protect construction work while it is being built. Contractors All Risks (CAR) covers civil construction projects such as buildings, roads and bridges, while Erection All Risks (EAR) covers the installation, testing and commissioning of plant and machinery. Both protect the works against accidental damage, fire, natural calamities and theft at site, from arrival of materials through to handover.
What it is
Both policies are written on an "all risks" basis: sudden and accidental physical loss or damage to the contract works is covered unless a specific exclusion applies, which is broader than named-peril covers like fire insurance. CAR is designed for projects dominated by civil work, such as housing, commercial buildings, roads and bridges. EAR is designed for projects centred on erecting machinery, such as factory lines, power equipment and process plants, and includes the testing and commissioning phase, which is typically the riskiest part of any installation.
Cover normally runs from the arrival of materials at the project site until the works are completed and handed over, and can extend into the maintenance or defect liability period. The sum insured is based on the full contract value, and either the contractor or the project owner can take the policy, with both named as insured where needed.
Who needs it
CAR cover is bought by builders, real estate developers, civil contractors and infrastructure companies executing roads, bridges and site works. EAR suits EPC contractors and manufacturers installing new plant, machinery lines or power and process equipment. Project owners often insist the policy is in place before work begins, and banks financing a project routinely require it as a lending condition, so the question is usually not whether to buy but who buys it and on what terms. Subcontractors benefit too when they are named as insured parties under the principal policy, avoiding overlapping covers on one site.
What's covered
- Accidental damage to contract works, materials and machinery at the project site
- Fire, lightning and explosion during construction or erection
- Natural calamities including flood, storm, cyclone and earthquake, per policy terms
- Theft and burglary of insured project materials at site
- Damage during testing and commissioning of machinery under EAR
- Damage during storage and handling of materials at the site
- Construction plant, equipment and temporary site structures, where added
- Third-party injury and property damage from site works, as an extension
Typically not covered
- The cost of rectifying defective design, material or workmanship itself, though resulting damage may be covered per the wording
- Normal wear and tear, corrosion and gradual deterioration
- Consequential losses such as delay penalties and loss of profit
- Loss or shortage discovered only during inventory-taking
- War, nuclear risks and wilful negligence
- Damage after handover or after the works are put into use, beyond agreed maintenance cover
Why buy it through Assurmate
One policy for the whole project
The works, materials and machinery are covered under a single policy from material arrival to handover, instead of piecemeal covers with gaps between them.
Covers the riskiest phase
EAR includes testing and commissioning, when machinery first runs under load and most erection losses actually happen.
Keeps lenders and principals satisfied
Banks and project owners routinely require CAR or EAR cover before funds flow or work begins, and the policy evidences exactly that.
Extensions shape cover to the site
Surrounding property, maintenance period, escalation and third-party liability extensions let the policy match your project's real conditions.
Free comparison across 75+ insurance partners
As a trusted insurance advisory we compare project insurance terms across 75+ insurance partners and structure the right extensions for your contract.
Claims support at site level
Project claims involve surveyors, site records and repair estimates. Our team coordinates the process so the project keeps moving.
Optional add-ons
- Third-Party Liability. Covers injury to people and damage to property outside the project arising from the site works, a near-universal requirement in contracts.
- Surrounding Property Cover. Covers damage to existing structures belonging to the principal near the works, such as an operating factory beside a new line being erected.
- Maintenance Period Cover. Extends cover into the defect liability period after handover, for damage arising from causes during construction or while contractors attend defects.
- Escalation Cover. Automatically increases the sum insured to track rising material and labour costs over a long project.
How to buy through us
- 1
Share your project details
Tell us the project type, contract value, timeline, site location and whether the work is civil-dominant or erection-dominant.
- 2
Compare tailored quotes
We compare CAR or EAR terms from 75+ insurance partners, including deductibles, extensions and how each wording treats your site risks.
- 3
Structure the policy with our help
We help you choose extensions like surrounding property and maintenance cover, and align the policy with your contract and lender requirements.
- 4
Get covered and stay supported
We complete the proposal and issue the policy before work begins, then support endorsements for project changes and any claim at site.
CAR / EAR Engineering Insurance questions
The things people ask us most about this cover.
It depends on what dominates the work. Civil construction like buildings, roads and bridges takes CAR; erection and installation of plant and machinery takes EAR. Mixed projects are usually placed under whichever element dominates, with the other covered within the same policy.
Cover typically begins when materials arrive at the project site and ends on completion and handover, or when the works are put into use, whichever is earlier. It can be extended into the maintenance or defect liability period after handover.
Either can. Often the contract specifies who insures, and the policy can name the principal, contractor and subcontractors as joint insureds so everyone working on site is protected under one cover without overlaps.
Yes, under EAR, and it matters because the first test runs under load are statistically the most loss-prone phase of an erection project. The length of the testing period covered is defined in the policy, so match it to your commissioning schedule.
Not under the basic works cover. Third-party liability and surrounding property extensions handle damage beyond the contract works, such as cracks in an adjacent building from excavation, and most contracts expect these extensions to be in place.
Deductibles, exclusions and extensions vary widely between insurers and can decide whether a site loss is paid. Our IRDAI-certified advisors compare plans across 75+ insurance partners, align cover with your contract conditions, and support you through claims, at no cost to you.
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