Contractors all risk insurance (also called CAR insurance or builders all risk insurance) is a specialist short term insurance policy covering construction and engineering projects against physical loss or damage to the works in progress, materials on site, and third party liability. It is a standard requirement on most construction contracts in South Africa, including those governed by JBCC, NEC3, GCC, and FIDIC. Cover runs from the date of site establishment through to practical completion.
Most employers will not let you start on site without proof of CAR insurance. And a policy that is not structured correctly for your contract is not cover — it is a document that will fail you when you need it most.
We arrange contractors all risk insurance and builders all risk insurance. Cover is structured correctly for your contract type from day one. Most contractors have their policy in place within 24 to 48 hours.
A standard CAR policy covers three areas.
The contract works Physical loss or damage to the structure being built, from the first day of site establishment through to practical completion. Storm damage, fire, flooding, collapse of excavations — if it is sudden, accidental, and unforeseen, this section of the policy responds.
Materials and temporary works on site Bricks, steel, pipework, fittings, scaffolding, and formwork waiting to be installed or in use on site. Material values fluctuate on long duration projects. An outdated sum insured leaves you exposed.
Third party liability Your legal liability if someone is injured near the site or if neighbouring property is damaged during construction. Most contracts specify a minimum liability limit. Check yours before you arrange cover.
In South Africa, contractors all risk insurance and builders all risk insurance refer to the same type of policy. CAR is the formal industry term used for larger construction and civil engineering projects. Builders all risk is the term residential builders and smaller contractors tend to use.
The underlying cover is the same. What changes is the structure and the contract requirements for your specific project. Whether you call it CAR insurance, builders all risk, or construction insurance, we arrange the right cover for your project type and contract conditions.
Building contractors Working under JBCC, NEC, or a letter of award from a private developer. The policy must be in place before you start on site.
Civil contractors Working on roads, drainage, pipelines, or bulk earthworks under GCC or FIDIC. SASRIA cover and minimum public liability limits are contractual requirements that a standard policy may not meet without specific structuring.
Residential developers Building homes or sectional title units. Even without a formal construction contract, the financial exposure of an uninsured construction project makes CAR insurance essential.
Specialist subcontractors Working on fit-outs, roofing, structural steel, or mechanical and electrical installations. Main contractors increasingly require subcontractors to carry their own CAR or liability cover before allowing them on site. Do not assume the main contractor’s policy covers you.
A cheap construction insurance policy that is structured incorrectly is not insurance. Three things go wrong most often.
The sum insured is set too low. The sum insured must reflect the full contract value, including professional fees, free issue materials supplied by the employer, and an allowance for cost escalation. A policy pegged to the original bill of quantities value without escalation can be significantly underinsured when a major claim arises. Underinsurance means your insurer pays only a proportional share of the loss. You carry the rest.
The joint names structure is missing. JBCC contracts require the policy to be in joint names, with the employer, main contractor, and all nominated subcontractors listed as insured parties. Without it, recovery actions between parties after a claim can run for years. A correctly structured joint names policy prevents this.
The policy period does not match the project timeline. Construction projects overrun. If your CAR policy expires before practical completion, your site is uninsured. We build extension mechanisms into every policy from the start.
Save your precious time by finding solutions. CONTACT US NOW.
Contractors all risk insurance and builders all risk insurance refer to the same type of cover in the South African market. Both protect construction projects against damage to the works, materials on site, and third party liability. CAR is the formal industry term used for larger construction and civil engineering projects. Builders all risk is the term most commonly used for residential and smaller commercial building projects. The underlying policy structure is the same. What differs is how it needs to be set up for your specific project and contract type.
There is no flat rate. The premium is calculated based on the contract value, the project duration, the type of construction, and the specific risks involved. Premiums for smaller projects can start from approximately R375 per month or from around R4,500 as a once-off payment. For larger projects, the premium is typically a percentage of the contract value. Contact us with your project details and we will come back to you with accurate pricing quickly.
You do not need the full CAR policy when submitting a tender, but you will almost certainly need a bid bond or tender guarantee. Once you are awarded the contract, the full CAR policy and performance guarantee must be in place before you start on site. The timeline between award and commencement is often shorter than contractors expect. Contact us as soon as you receive your letter of award.
CAR insurance covers physical loss or damage to the works in progress and materials on site, and includes a section of third party liability cover. Public liability insurance focuses specifically on your legal liability for injury to people or damage to property. Most CAR policies include a public liability section. Where a contract specifies a minimum public liability limit higher than what the CAR policy provides, a top-up or standalone public liability policy may be required.
Not automatically. For subcontractors to be covered, the policy must be structured as a joint names policy with the employer, main contractor, and all nominated subcontractors listed on the schedule. This must be set up correctly from inception. It cannot be added retrospectively after a claim.
Most contractors all risk policies and performance guarantees are confirmed within 24 to 48 hours. If you are working to a tight deadline, contact us as early as possible with your site commencement date or tender submission deadline and we will prioritise it.
Still have questions? Contact us and let’s chat.
Reliable short-term insurance administration
support for South African brokers. Reliable quotes, seamless claims, and trusted compliance since 2005.
Polico Africa (Pty) Ltd | FSP 4598 | FSCA-Registered | POPIA Compliant
Copyright © 2026 Polico Africa. All Rights Reserved.
Marketing & Design By Ntsakisi
