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Providing comprehensive coverage for construction projects, Acclaim makes Contractors’ All Risk Insurance Simple.

Construction All Risk Insurance

In the world of construction, unexpected events and unforeseen risks can pose significant financial threats to projects. Contractors’ All Risk insurance is a crucial safeguard that ensures your construction venture remains protected throughout its journey, from inception to completion. We explore the value that CAR insurance provides to all stakeholders involved in construction projects.

A Contractors’ All Risk policy pays claims on loss or damage arising from perils arising from:

  • Accidental damage
  • Natural perils
  • Damage due to faulty design
  • Underground works
  • Testing and commissioning

Builders’ All Risk Insurance Coverage

CAR insurance is also known as Builders’ All Risk (BAR) insurance in some regions, this is a specialized policy designed to shield construction projects against a wide range of risks and perils. This type of insurance offers comprehensive coverage safeguarding  your construction project against damages or losses, including those caused by fire, flood and natural disasters like earthquakes, floods, and storms.

CAR Insurance policy coverage scope is sectioned into:

1) Materials and Equipment Damage

It extends its protective umbrella over construction materials, machinery, and equipment present on the construction site. This ensures that even if your valuable assets suffer damage or theft, you are financially secure.

2) Third Party Liability
CAR insurance also covers third-party liability. This means that if there’s bodily injury or property damage caused by your construction activities, you’re protected from potential legal and financial repercussions.

contractor's all risk

Who Does CAR Insurance Benefit?

Being named into the policy, the policy can cover the following parties:

Contractors and subcontractors of all tiers

CAR insurance is a lifeline for contractors. It shields them from the financial fallout of unforeseen events that can jeopardize project completion. This peace of mind enables contractors to focus on delivering high-quality work.



Subcontractors working on a project are equally vulnerable to risks. CAR insurance ensures that subcontractors’ work and materials are safeguarded, mitigating potential disputes and financial losses.


Property Owners

Property owners or clients also benefit from CAR insurance. It ensures that their investment is secure and that the project can be completed even if unexpected setbacks occur.



Lenders who finance construction projects often require CAR insurance as a condition for providing funds. This safeguards their financial interests and ensures that the project can proceed without interruptions.

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Policy Duration and Extensions

CAR insurance typically covers a construction project from its inception until its completion and handover to the client. However, it can also be extended to include the maintenance and post-construction phases if required. This flexibility ensures that your project remains protected throughout its entire lifecycle.

Other extensions are possible with a bespoke policy depending on the intricacies and unique requirements of the project.

Cost and Considerations

Contractors’ All Risk (CAR) insurance is a cornerstone of the construction industry, providing invaluable protection and peace of mind to all parties involved. It ensures that your construction project can overcome unexpected obstacles, damages, or liabilities that may arise during the construction process. By investing in CAR insurance, you are safeguarding your project’s success and financial security.

If you’re a contractor, subcontractor, property owner, or lender, CAR insurance is not just an option—it’s a necessity. Don’t leave your construction project’s future to chance; choose CAR insurance to protect your investment, reputation, and peace of mind.


While cost of insurance can vary depending on the complexity, size and duration of the project, the larger considerations that a builder should take include but not limited to the following:

Contract Review
Contracts are being negotiated on a project level, and scope of works by contractors are drawn out in the contract. The liability conditions are also being spelt in the contracts, many a times without the contractor understanding the full repercussions if they are breached. We review our clients contracts to identify missing gaps and recommendations with various solutions, as part of our placement services.


Project Size and Scope
Larger and more complex projects often have more considerations when it comes to underwriting. Making sure all angles are being covered and presented to the insurance companies are important and this is part of what we do.


The geographical location of the construction project can impact insurance costs, especially in areas prone to natural disasters or close to key installations.


Delay in Start-Up

A cover that is supplemented especially if a financing stakeholder is involved in the project. DSU covers the financial losses suffered from a delay in the project due to unforeseen situations.


Construction Professional Indemnity

Not just for EPC contractors, all stakeholders should consider the professional indemnity on a project that covers claims made in the event of negligent work, providing poor consulting, or even error and omissions.


Environmental Liability

As claims can be made from sudden pollution of the environment caused by the project, Environmental Liability cover should be a key consideration.

Acclaim Construction Practice

When it comes to securing the success of your construction project, Contractors’ All Risk insurance is the ultimate shield against uncertainty. As each project and risk is unique, our Acclaim Construction Practice team will work with you throughout the whole process from placement to claims.

Acclaim Construction Practice provides integrated insurance solutions to projects across both public and private sectors. These include residential/mixed developments, industrial plants and infrastructure projects such as bridges, roads, rails, power & utilities in Singapore and across the region.

Through our global networks, we have a global Construction Practice comprising experienced construction insurance practitioners from USA, Europe and Asia as expert resources to serve on highly specialised and complex projects such as tunnels and dams. This allows us to access the global insurance markets for capacity as well as for competitive solutions.

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