CAR - Contractors' All Risks - Bosna RE

CAR - Contractors' All Risks - Bosna RE

.CAR/EARInsuranceSwissReCAR/ EAR

CAR - Contractors' All RisksMaterial damage 'All Risks' policy covering buildings and civilengineering projects during their construction period.SwissReCAR/EAR

Examples of CAR RisksLight risksApartment blocksOffice blocksSchoolsHospitalsIndustrial building (spans up to about 20m)SwissReCAR/EAR

Medium risksUnderground parkingWater towersPipelines (oil, gas, water)Sewage systemsRoadsAirportsBridges (single spans up to about 80m)SwissReCAR/EAR

Heavy risksSkyscrapersTunnelsBridges with large spans founded in waterDamsCanalsHarbour structuresLand reclamation worksSwissReCAR/EAR

EAR - Erection All RisksMaterial damage 'All Risks' policy covering the erection ofindividual machines or complete mechanical/electrical/chemicalplants during their construction period.SwissReCAR/EAR

Examples of EAR RisksPower plants for electricity generationWaste collection system (water, garbage etc.)Pulp and paper industriesPrinting industriesTextile industriesFood, canning and packing industriesSwissReCAR/EAR

Contract Works All Risks (CWAR)Combination of CAR and EAR policies.Many construction project contains a mixture ofcivil/building/electrical/mechanical works.It would make sense to introduce both CAR and EAR policycharacteristics into the project cover.SwissRe achieves this by combining both policies.SwissReCAR/EAR

CoverageA CAR/EAR policy covers unforeseen and accidental loss of, ordamage to, the insured objects during the construction periodfrom any cause not specifically excluded in the policy.SwissReCAR/EAR

During the construction period the standard policy covers thecontract works against unforeseen and accidental damage froma variety of risks, including:fire, lightning and explosionfaulty manipulation or handlingwater damage, flood, storm and typhooncollapse, landslide, earthquake, volcanic eruptionburglary, theft, malicious damageconsequence of defective material and/or workmanshipSwissReCAR/EAR

EndorsementsThe cover can be changed, widened or restricted, with anumber of standard endorsements i.e.:Consequence of Faulty DesignExisting PropertyExpediting/Airfreight CostsVisits/Extended MaintenanceContractors' Plant and EquipmentRiot and StrikeSwissReCAR/EAR

Here are a few which restrict coverage:Fire Prevention MeasuresStorage of Construction MaterialPipeline ConstructionTemporary Access RoadsExisting Underground Cables or PipelinesSwissReCAR/EAR

Third Party Liability SectionUnder the Third Party Liability (TPL) Section, cover up to areasonable limit of indemnity, generally not in excess of USD 2millions, is available for damage or injury or loss caused to thirdparties by the works activities on or in the immediate vicinity ofthe site.SwissReCAR/EAR

Main exclusionsliquidated damages, penalties for delay, financialconsequential losseswear and tear, normal upkeeploss of drawings, documentswar, political and nuclear risksSwissReCAR/EAR

Insured PartiesA main feature is to protect all those who have animmediate economic interest in the projecti.e.the principalthe contractor and all subcontractorsSwissReCAR/EAR

The advantage of insuring all the interested parties underthe same policy is twofold:No time-consuming disputes in apportioning blame; i.e.repairs can commence quickly after notifying the insurer.No gaps in insurance cover which can happen in the case ofindividual policies.SwissReCAR/EAR

Sum InsuredThe sum insured should represent the total estimated value ofthe works at completion, including materials, wages, salaries,freight, custom duties and taxes. It should also include thevalue of any material and/or labour supplied by the Principal.Upon completion of the project, the final value of the worksshould be declared and the premium adjusted accordingly.SwissReCAR/EAR

Insurance PeriodThe insurance period starts immediately after unloading on thesite and includesstorage on the siteconstruction and erectioncold testhot testand ends when the project has been handed over.SwissReCAR/EAR

Cold testThe checking of basic electrical/mechanical functions under 'dryrun' (not under load) conditions.No firing or application of direct or indirect headNo use of feedstock or other materials for processingSwissReCAR/EAR

Hot testThe checking of the insured item under load or operationalconditions including the use of feedstock or other material forprocessing.SwissReCAR/EAR

Insurance Period$CAR/EAR.provisional acceptancecertificate(PAC)maintenancemachinery breakdown,machinery loss ofprofits etc.01 02FCVfinal contract valuetransport, marineconstruction anderection periodcold testhot testfire, TPL,theft etc.SwissReCAR/EAR

MaintenanceThe CAR/EAR policy may be extended to the maintenanceperiod by specific endorsements:Visits MaintenanceExtended MaintenanceSwissReCAR/EAR

Visits MaintenanceThe contractor is insured against any loss or damage he maycause during the maintenance period to the property insuredunder the Material Damage section of the policy whilstperforming any contractual maintenance obligation at the site.SwissReCAR/EAR

Extended MaintenanceCover is granted as under "Visits Maintenance", however, it isextended to loss or damage which may arise from any act oromission of the contractor at the site during the contract worksperiod.SwissReCAR/EAR

Now, tell me what I haveforgotten to tell you ...SwissReCAR/EAR

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