5 Common Mistakes Construction Companies Make with CAR Insurance

Construction insurance is not just paperwork. It’s your lifeline when things go wrong.

Here are 5 common mistakes contractors make when it comes to Contractor’s All Risks (CAR) insurance:

1. Assuming “basic coverage” is enough – Many opt for cheaper plans, unaware it might exclude third-party liability or machinery coverage.
2. Not aligning coverage period with project schedule – Delays happen. If your policy expires before project ends, you're at risk.
3. Ignoring contractual obligations – Some contracts require certain coverages. Missing them could result in legal or financial penalties.
4. Underestimating project value – Declaring a lower project value to save on premium can lead to under-compensation during claims.
5. No clarity on sub-contractor responsibilities – If a sub-contractor causes a loss, who pays? Always clarify in writing and in your policy.

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