Contractor's All Risk Insurance (CAR)

It is a comprehensive policy that covers all losses or damages involved in the construction project and provides financial security to all parties involved in a construction project during the course of construction such as residential properties, commercial and industrial buildings, and infrastructure work.

Scope of Cover

  • The common causes of losses or damages to be indemnified under the Insurance Policy include the following:
    • Fire, lightning and explosion
    • Faulty manipulation or handling
    • Water damage, flood, storm and typhoon
    • Collapse, landslide, earthquake, volcanic eruption
    • Burglary, theft, malicious damage
    • Consequence of defective material and/ or workmanship
  • Contractor's All Risk Insurance policies are usually written with two sections:
    • Section I: refers to the material damage aspect to provides "All Risks" cover on buildings or infrastructure work in the course of construction.
      • Any form of physical loss or damage to the property is covered, subject to a number of exclusions.
      • The compensation may be repair, reinstatement, or replacement of any property lost or damaged, or a monetary payment equivalent to the cost of repair, reinstatement or replacement.
      • The policy may extend to cover contractors' equipment and machinery at construction site.
    • Section II: covers third-party liability arising out of the construction project for property damage and bodily injury including death to persons.
      • CAMINCO will indemnify the insured against any losses and damages which the insured is legally to pay.
      • Losses or damages are consequent upon accidental bodily injury to or illness of third-parties, and accidental loss of or damage to property belonging to third-parties occuring in direct connection with the items of the construction course under Section I of the Constraction All Risk insurance policy.
      • All cost and expenses of litigation recovered by any claimant from the insured or incurred by the insured himself, with the consent of the insurer, would also be covered.
    • Maintenance
      Contractor's All Risk Insurance (CAR) policy may be extended to the maintenance period by specific endorsements:
      • Visits Maintenance: The constractor is insured against any loss or damage he may cause during the maintenance period to the property insured under the Material Damage section of the policy whilst performing any constractual maintenance obligation at the site.
      • Extended Maintenance: Cover is granted as under "Visits Maintenance", however, it is extended to loss or damage which may arise from any act or omission of the contractor at the site during the contract works period.
    • Insurance Period
      The insurance period is started immediately after uploading on the site and includes
      • Storage on the site
      • Construction
      And ended when the project has been handed over or put into commercial operation
Insured Parties
A main feature is to protect all those who have an immediate economic interest in the project ("insurable interest"):
  • The principal
  • The contractor and all subcontractors
The advantage of insuring all the interested parties under the same policy is twofold:
  • No time-consuming disputes in apportioning blame; i.e. repairs can commence quickly after notifying CAMINCO.
  • No gaps in insurance cover which can happen in the case of individual policies.
Underwriting Information
  • The insured, the principle and other parties that have interests from the project.
  • Total Sum insured breakdown: basic contract details and values.
  • Temrs and Condition (Inquiry slip), Site or Plant layout plan and sections, project schedule.
  • Soil (Underground Geological Condition) Investigation, foundation design report and major equipment spec.
Why you need Contractor's All Risk Insurance (CAR)
  • Contractor's All Risk Insurance policy is needed when constractor undertakes any type of constraction work.
  • The constractor has responsibilities and obligations towards the principal and any third-parties who may be involved and affeced. As a result of this, the constractor shall be protected these obligations by this insurance policy.
Claim Procedure
  • In case of the event may give rise to a claim, the contractor will
    • Notify CAMINCO directly or via agent/ broker immedately.
    • Submit completed claim form or the loss adjuster's report providing most the information needed to ascertain whether or not the loss is covered.
  • Where the loss is complicated, CAMINCO will appoint a loss adjuster to prepare a report, and the insured will provide the following information to the loss adjuster:
    • The value of property prior to or after loss
    • The extent of loss or damage
    • The cause of loss or damage
    • The likely cost to repair
    • Any uninsured element (apart from the deductible)
    • The effect of extensive delays to the work
© 2012 Cambodian National Insurance Company (CAMINCO)