CAR - Contractors' All Risks - Bosna RE

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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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