Construction All Risks (CAR) insurance is a type of Engineering Insurance cover designed to protect construction projects against sudden and unforeseen physical loss or damage, as well as third-party liability, from project commencement until completion and handover.
In most civil construction projects, CAR insurance is a mandatory pre-requisite at tender award stage, alongside key financial guarantees such as Performance Bonds, Advance Payment Bonds, and statutory covers like WIBA. These requirements must be satisfied before:
Failure to comply may delay project commencement or affect funding approvals.
Construction projects are inherently exposed to a wide range of risks — including structural failure, contractor errors, weather-related damage, theft, and risks during testing and commissioning.
To address these exposures, CAR policies incorporate a range of clauses and extensions that define how coverage operates in practice.
Understanding these clauses is essential for contractors, project owners, engineers, and developers to ensure adequate protection and avoid costly gaps at claims stage.
At Surefront Insurance Brokers Ltd., we support contractors and project stakeholders in meeting pre-requisite insurance and bonding requirements for civil tender awards.
We assist in:
👉 Engage us early at tender award stage to ensure timely compliance, seamless contract execution, and uninterrupted project funding.
Covers physical loss or damage to works under construction.
Covers scaffolding, formwork, and shoring systems.
Covers legal liability for bodily injury or property damage.
Covers debris clearance costs following an insured loss.
Extends cover after completion for defects arising during the maintenance period.
Covers risks during testing prior to project handover.
Covers engineers’, architects’, and consultants’ fees during reinstatement.
Provides for increases in project cost.
Covers materials stored away from the construction site.
Covers materials while in transit.
Covers damage to nearby property.
Treats each insured party independently in liability claims.
Covers damage caused by excavation and structural weakening.
Covers damage to pre-existing property at the site.
Covers costs incurred in extinguishing fire.
Covers additional costs to expedite repairs.
Restores the sum insured after a claim.
Prevents recovery against specified parties.
Groups related losses within 72 hours as one occurrence.
Allows partial use of completed sections without affecting cover.
A well-structured CAR policy must align with project risks, contractual obligations, and practical exposures.
Engineering insurance is highly technical and project-specific. Inadequate structuring can result in coverage gaps, claims disputes, and uninsured financial exposure. The difference between a paid and declined claim often lies in how well the policy clauses were structured at inception.
At Surefront Insurance Brokers Ltd., we provide specialist advisory, structuring, and claims support for construction and engineering risks. We collaborate with leading insurers and reinsurance brokers to ensure adequate capacity, proper risk placement, and alignment with complex project exposures. Engage us early in your project lifecycle to ensure your project is fully protected.
Arbanus Kimenye
MBA (Insurance) | AIIK
Insurance & Risk Management Executive
A seasoned insurance professional with over 19 years of experience in underwriting, claims, and engineering risk advisory, delivering practical and results-driven insurance solutions.
