Construction All Risks Insurance (CAR Insurance)
Comprehensive Property Damage & Third-Party Liability Protection for Construction Projects
What is Construction All Risks Insurance?
A comprehensive insurance solution designed to protect construction projects against unexpected events, covering both property damage and third-party liabilities during the course of construction.
Construction All Risks Insurance (CAR)
Construction All Risks Insurance (CAR) is a type of insurance that provides coverage for construction projects, buildings, or structures during the construction phase. It covers:
- Damage to property or construction works
- Accidents or unforeseen events such as fire, flood, earthquake, or storms
- Legal liability to third parties, such as injury, death, or property damage caused by construction activities
Key Features of CAR & Contract Works Insurance
Types of Policies
Main Coverage
- Damage from accidents, unforeseen events, or natural disasters
- Damage during installation, transportation, or assembly
- Damage to machinery or equipment at the construction site
- Legal liability to third parties (Third Party Liability)
- Legal compensation (Legal Liability)
Common Exclusions
Standard items not covered under typical CAR policies unless explicitly extended:
- Design faults or defective design
- Damage from improper use or substandard materials
- Normal wear and tear or natural deterioration
Relevant Laws Related to Construction Insurance in Thailand
1. Non-Life Insurance Act B.E. 2535 (1992)
Requires insurance companies to obtain a license and regulates the terms and conditions of insurance policies.
2. Building Control Act (Amended) B.E. 2562 (2019)
Buildings taller than 23 meters or larger than 10,000 sq.m. are required to have third-party liability insurance before construction/renovation permit approval.
3. Terms of Reference (TOR) in Construction Contracts
Many construction projects, especially public or large-scale ones, mandate contractors to purchase CAR and CGL insurance.
Documents Required for Insurance Application
- Construction drawings or BOQ (Bill of Quantities)
- Project details and exact site location
- Total project value (including material and labor costs)
- Construction period schedule
- Information about the project owner or main contractor
Home Renovation Insurance (CAR Insurance) What Does It Cover?
1. Damage to Renovation Work
Covers loss or damage to the renovation project caused by fire, water leaks, collapse, or accidental events.
2. Damage to Existing Property
Can be extended to cover original structures not being renovated (e.g., existing roof, walls).
3. Third-Party Liability
Protects against injury to others or damage to neighboring property (e.g., falling debris damaging neighbor's car).
4. Debris Removal Costs
Covers the cost of clearing debris or demolition after an incident (included in insured amount).
Ideal for: Homeowners hiring contractors for renovation, or contractors seeking risk reduction.
Coverage Period: Duration of the project (e.g., 60-120 days)
Premium: Starts from around 0.5% - 1% of renovation value
Insurance Partners You Can Trust
We collaborate with Thailand's leading insurance carriers to deliver optimal coverage for your business.
Get a Customized CAR & Renovation Insurance Quote
Consult with Pacific Care's construction insurance advisors to protect your building projects and renovation works.
Request CAR Insurance Quote