# What is CAR (Construction All Risks)?
**CAR stands for Construction All Risks and is an insurance policy that covers material damage to a building throughout the entire construction period.** It is one of the most important forms of insurance in the construction industry, protecting both the client and the contractor against unforeseen damage.
## What Does a CAR Policy Cover?
A CAR policy typically provides cover for:
– **The works themselves** — damage caused by fire, storm, flooding, theft or vandalism
– **Existing property** — damage to existing buildings on or near the construction site
– **Construction materials** — materials stored on site
– **Temporary works** — scaffolding, formwork and plant
– **Third-party liability** — damage to third parties resulting from construction activities
## Who Takes Out the CAR Policy?
– On **private builds**, the contractor usually arranges the policy
– On **larger projects**, the client may take out the policy so that all parties are covered
– Standard **contract conditions** often stipulate who is responsible for the CAR insurance
## Duration
The CAR policy runs from the start of construction until handover. A maintenance period (typically 12 months after completion) is often included to cover defects originating during the build.
## Application
A CAR policy is advisable for virtually any building project, from a dormer window to a complete new-build house. Always verify that your contractor holds a valid CAR policy before work begins.
## Related Terms
– Building permit
– Contractor
– Specification
– Handover
– Construction process
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