Contractor's All Risk Insurance UAE | Compare & Buy CAR Policy Online

What is a Contractor All Risk Insurance Policy?

Contractors All Risk Insurance (CAR), also known as Construction All Risk Insurance, financially protects contractors, builders, and related stakeholders from unexpected financial losses during a construction or renovation project.

The coverage of a CAR policy extends to material damage, property loss, theft, vandalism, natural calamities, and accidents on-site. It also covers third-party liabilities, covering legal expenses and compensation for incidents involving third parties.

Important Note: The coverage of a standard policy begins once the construction work starts or materials are delivered at the site. It ends when the project is completed or put into use. This coverage duration is given by most insurance companies.

Who Needs a Contractors All Risk Insurance Plan in the UAE?

In the UAE, a Contractors’ All Risk Policy is essential for any business involved in construction projects. Contractors and subcontractors working on-site are the primary policyholders — the coverage protects them against potential risks and financial losses.

Moreover, project owners, developers, builders, and general contractors who oversee or manage construction works may also need this insurance. With a CAR policy, all parties involved in the project can safeguard themselves from liabilities, property damage, and unforeseen incidents during the construction phase.

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Key Features & Benefits of Contractor All Risk Insurance

Listed below are the key features and benefits of Construction All Risk Insurance coverage —

Top 5 Key Features & Benefits -

It gives you comprehensive coverage from a range of risks involved in a construction project — third-party liability, property damage, material damage, and more.

Compared to individual property or liability insurance plans, a contract all risk policy often proves to be a more economical option

You can easily customise coverage for your specific project needs, including machines, equipment, project size, and more

Your insurance plan may compensate contractors if projects are postponed or delayed due to unexpected factors like extreme weather, workforce disputes, and more

Many insurance companies also give services like risk assessments, which helps contractors identify potential risks associated with the project and take steps to mitigate or avoid them

What is Covered Under Contractors All Risk Insurance in UAE?

Here are the general inclusions of Contractor All Risk Insurance in Dubai and other emirates —

Coverage for theft, burglary, and damages related to insured tools, equipment, or machinery used in the construction project
Provisional repairs or replacement costs
Any loss or damage due to fire, lightning, flood, explosion, and any other natural calamities (only if mentioned in the policy)
Cost of clearing debris after an insured event (some plans may require an additional amount for this)
Legal liability for accidental injury, illness, death, or property damage to third parties, pedestrians, neighbouring buildings, properties, and more

What is Not Covered Under Contractors All Risk Insurance in UAE?

Find below the major exclusions under Contractors All Risk Insurance UAE —

Loss or damage due to war and war-like situations
Loss or damage due to a faulty design
Defective materials or poor workmanship
Wear and tear, corrosion, deterioration from disuse, or normal atmospheric conditions
Loss or damage to vehicles for road use, water vessels, or aircraft
Injury or illness of employees, workers, or their family members
Nuclear or radioactive contamination
Willful negligence
Electrical or mechanical breakdown of machinery and equipment
Loss or damage due to terrorism (unless not added as an extended cover)

Additional Coverage Options Under Contractor All Risk Insurance in UAE

While a Contractors All Risk Insurance policy covers most eventualities associated with a construction project, additional coverage in the form of add-ons is available for extended protection. Some of the common add-ons include-

Collateral warranties
Maintenance visit cover
Contract works
Professional fees such as consultants, architects, and more
Construction professional indemnity
Environmental liability and more

Factors Affecting the Cost of Contractor's All Risk Insurance Plans in UAE

Mentioned below are the major factors that impact the premium of a Construction All Risk Insurance Policy —

Nature or Size of the Project	The type of construction project affects the premium of CAR insurance. Riskier projects, like high-rise buildings or bridges, usually cost more to insure compared to smaller or simpler projects.
Contract Value of the Project	If the project is expensive, the insurance will also be more costly. That’s because the insurer covers the full value of your materials, labour, and equipment. So the bigger the project, the higher the premium.
Location & Environment	The location where the project is carried out plays a significant role in determining the cost. Sites in flood-prone, coastal, or high-traffic areas may attract higher premiums due to the increased risk of damage or third-party liability.
Construction Project Duration	The longer the project runs, the higher the chances of damage or accidents. This extended risk exposure means insurers generally charge more for projects that take longer to complete.
Add-ons	If you choose extra covers in the form of add-ons, the premium will increase. You should be aware that add-ons enhance protection but also increase the overall cost of the policy.

Important: Never buy a policy in a hurry — always take advantage of expert assistance in choosing the right Contractor All Risk Insurance Dubai. Connect with us at Policybazaar.ae for the right advice!

How to Get Contractor All Risk Insurance in the UAE?

When it comes to choosing the best Contractors All Risk Insurance Policy, it’s crucial to buy from an expert who understands the challenges involved in a construction project. With Policybazaar.ae, you can find a range of plans from the top insurers tailored to meet your unique requirements.

Simply follow the steps below and buy the right plan in just a few clicks —

Hit the button below to get the lead form
Enter the specified details in the form
Submit it — you’ll soon get a call from our representative who will help you choose the best one

Wondering why you should choose Policybazaar.ae? Here’s why getting a policy through our platform can be incredibly beneficial for your business —

You get personalised advice as per your project, preferences, and budget
Find a range of policies from the top insurance companies in one place
Dedicated customer support
No hidden details or charges

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Wrapping Up

Construction projects are never free from risk — whether it’s property damage, accidents, or third-party liabilities. Many other unexpected events like fire, flood, earthquakes, or even construction errors can cause major financial setbacks.

A Contractors All Risk insurance policy acts as a safety net, offering comprehensive coverage that protects against these uncertainties. With this policy, contractors or builders can safeguard their finances, handle challenges with confidence, and stay focused on completing their projects successfully without the constant worry of unexpected losses.

Frequently Asked Questions

No, Construction All Risk Insurance is not mandatory in the UAE. However, it’s highly recommended to get this coverage to safeguard your business.

Contractors All Risk Insurance policy covers different types of damages and losses involved in a construction project. Typically, it covers theft, burglary, earthquake, flood, legal liabilities, and more.

When you buy Contractors All Risk Insurance, you get financial coverage for construction projects against accidents, property damage, and third-party claims. It covers legal expenses, reduces financial strain, and offers peace of mind.

Contractors, builders, project owners, construction companies, subcontractors, consultants, and others involved in the construction project can buy Contractors All Risk Insurance plans.

Contractors All Risk Insurance Dubai