The works in progress
- Storm, fire and water damage
- Theft and vandalism
- Mistakes by your own staff
- Also where there is no liable party
The works in progress · sections · maintenance period
Construction all risks (CAR) insurance for construction and erection work
CAR insurance covers damage to the works you are building or renovating. That is exactly the damage liability insurance excludes.
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Deze pagina in het Nederlands: CAR-verzekering voor bouw- en montagewerk.
The calculator and the quote form below are in Dutch. Prefer to do this in English? Email info@finassverzekert. nl or call 072 - 509 24 56 and we will take it from there.
Work out for yourself what it would cost.
Enter your details; you will receive a proposal within one working day.
- We compare the offerings of several insurers
- An adviser checks whether the cover suits your activities
- We arrange the switch, including cancellation
A premium indication, not personal advice. Prefer to talk it through? Call 072 - 509 24 56.
In brief
CAR stands for Construction All Risks. It is a construction and erection insurance that insures the works in progress: the building or installation as it stands on site, including the materials incorporated. Unlike liability insurance, the CAR policy does not ask who is at fault. If a half-built wall blows over or material is stolen from the site, the works is insured without there having to be a liable party.
The policy is built up from sections which you choose individually: the works itself, liability during construction, existing property belonging to the client, ancillary plant and site huts, personal property of site management and staff, and transport to the site. On renovation and restoration the existing property section is the most important: you are then working in the middle of a building that is already there and that you can damage.
You also choose between a single-project CAR policy for one project and a continuous CAR policy for all works in a year, with a maximum contract sum per works. Anyone who builds regularly is better served by a continuous contract: nothing has to be arranged per project. See also the business CAR insurance.
What does a CAR policy consist of?
The policy consists of sections. You choose which of them apply to your project.
Existing property
The client's building or installation in or on which you work.
- Damage during renovation
- Often a separate sub-limit
- Vibration and foundation damage limited
- Usually with an excess
Ancillary plant and site huts
Scaffolding, machinery, tools and site huts at the location.
- Theft with forced-entry requirements
- Damage from fire or storm
- Hired plant if stated
- Your own plant, named
What is covered
| Situation | Basic | Extended |
|---|---|---|
| Storm damage to the works in progress | Yes | Yes |
| Theft of materials already fitted | Provided that | Yes |
| Damage to the client's existing building | No | Yes |
| Putting right your own defective work | No | No |
| Consequential damage from a design fault | No | Provided that |
| Contractual penalty for late completion | No | No |
Which sections, limits, excesses and clauses apply is stated on the policy schedule. The construction period and maintenance period can differ per project.
Where things go wrong in practice
Four points that determine whether a construction claim is actually paid.
Existing property is not insured automatically
On renovation, refurbishment and restoration the largest loss rarely lies in the new work, but in the building that was already there. You have to take out that existing property section separately and set it at a realistic amount. Note the restrictions for damage caused by piling, excavation, dewatering and vibration: that is often excluded or covered only with a separate clause and a lower limit, while that is precisely where the chance of an adjoining property subsiding lies.
The construction period and the maintenance period expire
The cover applies during the construction periodstated on the policy. If the project overruns, and that happens often, that period has to be extended in good time. It cannot be reported afterwards. After handover a maintenance periodstill applies, which in the limited form covers only damage you cause during maintenance work, and in the extended form also damage that had its cause in the construction period. That difference is clearly felt on handover of a renovation.
What is not included
The following, among others, are outside the cover: putting right your own defective work or materials (only the consequential damage can be covered), delay losses, penalties and lost profit, normal wear, discolouration and gradual effects, theft from a site that was not closed off or secured as required by the clause, and damage caused by asbestos, war and nuclear reactions. Intent and recklessness on the part of the insured are excluded under Article 7:952 of the Dutch Civil Code. Damage resulting from deliberately ignoring safety or working instructions is also rejected.
Who is on the policy determines who can claim
A CAR policy usually has several insured parties: client, main contractor, subcontractors and sometimes the architect and consultants. If a subcontractor is not on it, the insurer can recover the loss from him. Check that before work starts. Give an accurate picture of the contract sum, the activities and the surroundings on the application; that falls under Article 7:928 of the Dutch Civil Code, with a reduction or refusal under Article 7:930 of the Dutch Civil Code. Report a claim as soon as reasonably possible (Article 7:941 of the Dutch Civil Code) and photograph the situation before clearing up.
What does your premium depend on?
- Contract sum: the usual basis for calculation
- Nature of the work: new build, renovation or restoration
- Construction period: a longer term, a higher premium
- Sections chosen: existing property weighs heavily
- Location and surroundings: adjoining properties and access
- Excess per event: a higher excess lowers the premium
Insurers weigh these details differently. That is where your saving is.
How we arrange it
- You request a quoteWe take stock of your situation, risk and wishes.
- We compareseveral insurers, on premium as well as conditions.
- You receive a proposalWith an explanation of the differences and the exclusions.
- We arrange the switchIncluding cancellation, so there is no gap in cover.
9.5New policy
9.8Claims handling
Customers rate our service on four aspects: personal service, service delivery, availability and the outcome. The reviews are collected and published by NH1816 and come from customers who have actually taken out a policy with Finass Advies B.V. or reported a claim.
Frequently asked questions
This is what people ask us most.
What does CAR stand for?
CAR is the abbreviation of Construction All Risks. It is a construction and erection insurance that covers damage to the works in progress, regardless of who caused the damage. In that it differs fundamentally from liability insurance, which only pays once someone is liable for someone else's loss.
Take out a single-project or a continuous policy?
A single-project CAR policy applies to one project and suits a one-off or large job. A continuous CAR policy covers all works within a year up to a maximum contract sum per works and is more practical for contractors with many assignments. If a project exceeds that maximum, a separate policy is still needed for that works.
Who takes out the CAR policy, the client or the contractor?
Both occur. Many specifications provide that the contractor arranges the insurance and that the client is included as a co-insured. On large projects the client takes out the policy and notifies all the parties involved. What matters is that only one CAR policy runs and that everyone is named on it.
Is damage caused by a design fault covered?
That depends on the clause. Putting right the defective component itself is often excluded, while the consequential damage to the rest of the works is paid for. Some policies exclude design risk entirely. For pure financial loss arising from an advisory error, professional indemnity insurance is needed.
Are tools in the site hut insured?
Only with the ancillary plant section, and then subject to forced-entry conditions: the hut or container has to be properly locked and an additional requirement about leaving machinery behind often applies. For expensive and mobile plant a separate plant policy is usually better, because it also provides cover away from the site.
Read more
Within Car verzekering
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Is your project properly insured?
Request a quote without obligation. We determine per project which sections and periods are needed.
Prefer to call? 072 - 509 24 56, weekdays 09:00–17:00.
Claim on the road? Emergency line 06 - 55 20 40 72.
About our service
Finass Verzekert is a trading name of Finass Advies B.V. We advise on and arrange non-life insurance on the basis of an objective analysis of several insurers, and receive commission for this from the insurer, which is included in the premium. You pay no separate advice fee. Before you take out cover, we establish your wishes and needs.
You will find our licence, KvK and Kifid details and our complaints procedure at the foot of every page.
This page was written and checked by an adviser at Finass Verzekert. Last updated on .
The information on this page is general in nature and is not personal advice.