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Construction Insurance (CAR/EAR)

Materials on site get damaged. A crane incident delays the project. CAR/EAR covers the works from groundbreaking to handover.

What Is Construction Insurance?

You're halfway through a residential project when a storm floods the ground floor. $150,000 of completed works are damaged, materials stored on site are ruined, and the project timeline slips by six weeks. Construction insurance pays for all of it — the damaged works, the replacement materials, and the third-party claims if anyone else's property was affected.

CAR (Contractors' All Risks) and EAR (Erection All Risks) insurance provides project-specific coverage for construction and engineering works. It protects against physical loss or damage to the works, materials on site, materials in transit, and third-party liability — from groundbreaking through to completion and the maintenance period.

In Singapore, construction insurance is effectively a prerequisite for any project. BCA, HDB, and private developers all require it as a condition of contract. No CAR policy, no tender. It's that simple.

Coverage

What's Covered

Key areas of protection included under a typical Construction Insurance (CAR/EAR) policy.

Contract works

The works under construction — if fire, storm, or collapse damages them, the materials and labour costs are covered

Materials on site

Cement, steel, timber, fittings — covered for loss or damage while they're sitting on your project site

Materials in transit

Materials get damaged on the way to site? Covered for loss during transport

Third-party liability

A crane drops a load near a public road. Piling work cracks a neighbour's wall. This covers the claim.

Existing property

Your works damage the principal's existing building — the adjacent structure, the connected wing, the existing fit-out

Maintenance period

Coverage continues during the defects liability period after you hand over the project

Removal of debris

Demolishing, clearing, and disposing of debris after a covered loss — costs add up fast

Professional fees

Architects', engineers', and surveyors' fees for reinstating damaged works

Who Needs This

Who Needs Construction Insurance?

Main contractors. If you're running a construction project, you need CAR insurance. It covers the full value of the contract works — materials, labour, subcontractor work — against physical damage. Most construction contracts place the insurance obligation squarely on the main contractor.

Subcontractors. The main contractor's policy usually covers the whole project, but you may need your own coverage for equipment you bring to site, your portion of the works, and your third-party liability. Some main contractors require it.

Developers and project owners. You have a financial interest in the works. Being named as co-insured on the contractor's CAR policy protects that interest. Alternatively, you can arrange a project-wide policy yourself for tighter control.

Engineering and M&E contractors. Installing machinery, mechanical and electrical systems, or structural steelwork? EAR coverage protects against the unique risks of erection and commissioning that standard property insurance doesn't touch.

Related Industries

Construction & Engineering

Why TRS

Why Get Construction Insurance Through TRS?

We've done this before. We structure CAR/EAR policies to match your exact contract requirements — right insured parties, coverage period, maintenance period, and liability limits. From HDB BTO projects to private commercial developments, we know what works.

Tender-ready, fast. Need a Certificate of Insurance for a tender submission? We prepare and issue COIs quickly so you can submit on time. No chasing, no delays.

Annual policies for active contractors. Running multiple projects? We structure annual open-cover policies that automatically cover new jobs as they start — saving you time and typically reducing your per-project premium.

FAQ

Frequently Asked Questions About Construction Insurance (CAR/EAR)

CAR (Contractors' All Risks) covers civil engineering and building construction — buildings, roads, infrastructure. EAR (Erection All Risks) covers installation of machinery, equipment, and steel structures. Many projects need elements of both. Your TRS advisor will recommend the right combination for your project.
There's no blanket law, but it's a contractual requirement on virtually every project. BCA, HDB, and private developers all require contractors to carry CAR/EAR insurance as a condition of the construction contract. Without it, you don't win tenders.
Usually the main contractor, with the developer named as co-insured. But some developers arrange project-wide policies themselves. It depends on the contract. We advise based on your specific tender requirements.
CAR includes a maintenance period (usually 12 months after handover) covering damage to the works from your rectification activities. But it doesn't cover the cost of fixing the defects themselves — only damage caused while you're doing the fix.
Yes. If you run several projects at once, an annual open-cover CAR policy automatically covers new projects as they start. It saves time, reduces admin, and often lowers your overall premium compared to project-by-project policies.

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