Department of management, College of Arts & Sciences Bellevue University, Nebraska.
Research Article
World Journal of Advanced Research and Reviews, 2024, 24(02), 1193-1199
Received on 26 September 2024; revised on 07 November 2024; accepted on 09 November 2024
Comprehensive protection during construction projects is the goal of Contractors' All-Risk (CAR) insurance, which is a specialistized kind of insurance policy. The specific purpose is to protect against property damage and third-party liability, which can arise during construction operations. This study examined the conceptualisation and scope of CAR insurance, with a view to evaluating the factors considered in choosing insurance cover. It adopted a conceptual approach, reviewing the broader coverage provided by CAR insurance, the way it is designed and customized to meet the unique requirements of construction projects and contractors from secondary data, using policy statements, journals and brochures. The study reviews the provisions of CAR as cover against unintentional damage to materials, construction equipment, and both temporary and permanent works. CAR insurance also covers third-party liability to shields contractors from lawsuits resulting from injuries or property damage to third parties that may be caused by construction activities. The study concluded that CAR insurance is essential for reducing risks in big building projects where mishaps or unforeseen losses could put a substantial burden on finances. Depending on the requirements of the project, CAR insurance can be extended to cover more particular risks.
Material damage; Insurance policy; Contractors all-risk insurance; Construction Liability; Risk Mitigation
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Olukunle Ogundimu. Contractors' All-Risk (CAR) Insurance: A Critical Tool for Risk Management in Construction Projects. World Journal of Advanced Research and Reviews, 2024, 24(2), 1193-1199. Article DOI: https://doi.org/10.30574/wjarr.2024.24.2.3376