Introduction

Contractors' All Risks and Erection
All Risks policies are commonly sought by Contractors when they are awarded contract jobs for either construction of buildings or erection of machinery. Moreover, the Building Contracts may require the contractors to effect such insurances.

In broad terms, the differences between a Contractors' All Risks and an Erection All Risks policy are:

C.A.R Projects
Related to infrastructure work (dams, roadworks etc) and use basic, or relatively simple and non-manufactured building material such as sand, gravel, cement, wood and steel etc. All C.A.R projects are ground based.

E.A.R Projects
This is related to the erection, installation, testing and commissioning work for electro-mechanical equipment (e.g. Turbines, transformers, boilers). In general, erection is made inside the building or structures which fall under C.A.R Insurance.

On occasions there are projects which possess both C.A.R & E.A.R features. One way to determine the classification for a C.A.R or E.A.R portfolio is to ascertain the respective contract value if a breakdown is available.

If the contract owes at least 51% of its value to civil works, it is classed as C.A.R. The reverse applies if the E.A.R contract value is above 51%.

Please refer to Proposals the Branch concerned for quotation and acceptance for these type of insurance.