Commercial insurance · Singapore

Contractors All Risk (CAR) Insurance

Covers physical loss or damage to construction works, materials and plant, plus third-party liability arising from the construction project. Often required by main contractors and BCA tender categories.

Get contractors all risk quotes

When CAR insurance is required

CAR is not compulsory under Singapore statute. It is, however, effectively mandatory by contract across the Singapore construction sector. CAR cover is required by:

  • BCA — building contractor and works-head licence applicants under the Builders Licensing Scheme must demonstrate adequate project insurance arrangements.
  • HDB and JTC — standard conditions of contract for HDB and JTC main contracts require joint-names CAR cover for the duration of the works.
  • LTA, PUB, NEA, NParks — statutory boards routinely require CAR as a tender prerequisite.
  • Private developers — SIA Articles & Conditions of Building Contract and bespoke conditions require CAR.
  • Main contractors — sub-contract conditions flow the CAR requirement down to sub-contractors.

The two sections of a CAR policy

A Singapore CAR policy is usually written in two sections:

Section 1 — Material Damage

Covers physical loss or damage to the contract works, materials on site, temporary works, plant, formwork and contractor's tools from any cause not specifically excluded. Pays the cost of repair or replacement up to the sum insured.

Section 2 — Third Party Liability

Covers legal liability to third parties (members of the public, neighbouring property owners, adjacent utilities) for bodily injury or property damage arising from the execution of the contract works. Sits over and around the public liability cover the main contractor carries at the corporate level.

Joint-names cover and the “insured”

Singapore CAR policies are typically written in joint names: the Employer (developer or owner), the Main Contractor, all sub-contractors of every tier, and the Architect / Engineer in their capacity as project supervisors. The effect is that no party can sue another insured party under the policy — the insurer indemnifies all insured parties for the same loss without subrogating against fellow insureds.

Read the insurance clause in your specific contract carefully. PSSCOC, SIA, FIDIC and bespoke contracts each have slightly different wording on who must be named, who bears the policy excess, and how recoveries from sub-contractors are handled.

Common exclusions

  • Defective design (covered by professional indemnity carried by the architect and engineer).
  • Defective workmanship and materials — only the consequential damage to other parts of the works is covered.
  • Wear, tear, gradual deterioration.
  • War, nuclear and cyber risks.
  • Penalties and liquidated damages.
  • Consequential loss with no physical damage.
  • Tunnelling, piling and works in water — usually need named extensions and higher excesses.
  • Existing structures around the works — need an “existing surrounding property” extension.

Sum insured and limits

Section 1 (Material Damage): set the sum insured to the full contract sum, plus free-issue materials, plus escalation, plus an allowance for removal of debris and professional fees. Under-declaration triggers average and scales claim payments.

Section 2 (Third Party Liability): set by the contract insurance clause. Typical Singapore main-contract limits:

  • Small projects (under S$5m contract sum) — often S$2m to S$5m limit.
  • Mid-size building works — S$5m to S$10m.
  • Infrastructure, MRT and large public-sector works — S$10m to S$25m or more.

Period of cover and maintenance period

CAR runs from the start of construction (or arrival of materials on site, whichever is earlier) through to the issue of the completion certificate. A maintenance period of typically 12 to 24 months is then added to cover defects rectification — loss or damage during defect-correction works, and damage discovered during the maintenance period that was caused during the construction period.

Verified policy facts

Facts extracted verbatim from each insurer's policy document. We show the source URL, SHA-256 fingerprint of the PDF we read, and the document type (policy wording / proposal form / brochure). Where a fact is left blank in the source — for example, schedule-level limits in a master wording — we mark it “blank in source” rather than infer.

QBE Singapore logo

QBE Singapore

QBE Insurance (Singapore) Pte Ltd

Policy wording✓ Verified
Product summary

This Policy is issued in consideration of the payment of premium as specified in the Policy Schedule and pursuant to the answers given in Insured's Proposal Form (or when Insured applied for this insurance) and any other disclosures made by Insured between the time of submission of Insured's Proposal Form (or when Insured applied for this insurance) and the time this contract is entered into. The Policy provides two sections of cover: Section 1 covering unforeseen and sudden physical loss or damage to the contract works and associated items, and Section 2 covering third-party legal liability for bodily injury and property damage occurring within the immediate vicinity of the insured project during the period of insurance.

Territorial scope
Claims made and actions instituted outside Malaysia. (Section 2 Exclusion 4.8 — liability cover is limited to Malaysia; Section 1 territorial scope not explicitly stated beyond the site)
Cover trigger
losses-occurring
Premium basis
payment of premium as specified in the Policy Schedule
Deductible
the deductible stated in the Schedule to be borne by the Insured in any one occurrence

Limits

  • Aggregate:as specified in the Schedule
  • Per occurrence:as specified in the Schedule
Extensions (4)
  • Debris removal: The Company will also reimburse the Insured for the cost of clearance of debris following upon any event giving rise to a claim under this Policy provided a separate sum therefore has been entered in the Schedule.
  • Extra charges for overtime, nightwork, work on public holidays, express freight are covered by this insurance only if previously and specially agreed upon in writing (Memo 3).
  • Law Costs And Expenses: defend in the name of and on behalf of the Insured any suit against the Insured alleging such bodily injury, property damage and seeking damages on account thereof even if such suit is groundless, false or fraudulent.
  • Provisional repairs: The cost of any provisional repairs will be borne by the Company if such repairs constitute part of the final repairs and do not increase the total repair expenses.
Exclusions (40)
  • Cessation of work whether total or partial.
  • Total or partial destruction, distortion, erasure, corruption, alteration, misinterpretation or misappropriation of ELECTRONIC DATA; error in creating, amending, entering, deleting or using ELECTRONIC DATA; total or partial inability or failure to receive, send, access or use ELECTRONIC DATA from any cause whatsoever.
  • Loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any act of terrorism regardless of any other cause or event contributing concurrently or in any other sequence to the loss.
  • Ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel; nuclear weapons material.
  • War, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, mutiny, riot, strike, lock-out, civil commotion, military or usurped power, or malicious persons acting on behalf of or in connection with any political organisation, expropriation including lawful seizure, resumption, confiscation, commandeering, requisition or destruction of or damage to property by or under order of the government de jure or de facto or by any public authority.
  • Willful act or willful negligence of the Insured, or of his representatives.
  • The deductible stated in the Schedule to be borne by the Insured in any one occurrence.
  • Consequential loss of any kind or description whatsoever including penalties, losses due to delay, lack of performance, loss of contract.
  • Loss or damage due to faulty design.
  • The cost of replacement repair or rectification of defective material and/or workmanship but this exclusion shall be limited to the items immediately affected and shall not be deemed to exclude loss or damage to correctly executed items resulted from an accident due to such defective material and/or workmanship.
  • Wear and tear, corrosion, oxidation, deterioration due to lack of use and normal atmospheric conditions.
  • Mechanical and/or electrical breakdown or derangement of construction plant, equipment and construction machinery.
  • Loss of or damage to vehicles licensed for general road use or water borne vessels or aircraft.
  • Loss of or damage to files, drawings, accounts, bills, currency, stamps, deeds evidences of debt, notes, securities, cheques.
  • Loss or damage discovered only at the time of taking an inventory.
  • Bodily injury to any employees of the Insured arising directly or indirectly out of or in the course of their employment in the Business of the Insured.
  • Any liability the Insured may have in respect of bodily injury sustained to any person who is, pursuant to any legislation relating to Workers' Compensation, deemed or defined to be an employee of the Insured.
  • Any liability in respect of which the Insured is entitled to seek indemnity under any policy of insurance required to be taken out pursuant to any legislation relating to Workers' Compensation.
  • Any liability imposed by the provisions of any Workers' Compensation legislation or any industrial award or agreement or determination.
  • Property damage to property owned by or leased or rented to the Insured.
  • Property damage to property in the physical or legal control of the Insured (subject to exceptions at 4.2.3–4.2.6).
  • Claims arising out of the ownership, maintenance, operation or use by the Insured of any aircraft or hovercraft; any watercraft exceeding 7.5 metres in length; claims arising out of the Insured's Products that are used with the Insured's knowledge in aircraft or aerial devices.
  • Bodily injury or property damage arising out of the ownership, maintenance, possession or use by the Insured of any vehicle which is registered or is required under any legislation to be registered, or in respect of which insurance is required to be effected by or on behalf of the Insured by or under any legislation.
  • Liability assumed by the Insured under any contract or agreement except to the extent that such liability would have been implied by law (subject to exceptions at 4.5.1–4.5.2).
  • The rendering of or failure to render professional advice or service by the Insured or any error or omission connected therewith.
  • Bodily injury or property damage caused by or arising out of the discharge, dispersal, release or escape of pollutants into or upon land, the atmosphere, or any water course or body of water (subject to sudden/identifiable exception).
  • Any costs and expenses incurred in the prevention, removing, nullifying or cleanup of such contamination or pollution (subject to sudden/identifiable exception).
  • Claims made and actions instituted outside Malaysia.
  • Any actual or alleged liability whatsoever for any claim or claims in respect of losses directly or indirectly arising out of, resulting from, in consequence of, contributed to or aggravated by asbestos in whatever form or quantity.
  • The cost of performing, completing, correcting or improving any work undertaken by the Insured.
  • Bodily injury or property damage in respect of damage to any land or fixed property arising directly or indirectly from vibration.
  • Bodily injury or property damage caused by or arising out of any defective design or error in specification or formula of any of the Insured's Products (except where Insured does not manufacture the product but purely sells, supplies or distributes).
  • Fines, penalties or liquidated damages.
  • Punitive damages and/or exemplary damages and/or aggravated damages and/or any additional damages resulting from the multiplication of compensatory damages.
  • Work performed on offshore gas and oil platforms.
  • Bodily injury or property damage arising from the sale or distribution of pharmaceuticals imported or manufactured by the Insured (except vitamins available without a prescription).
  • Any loss or damage including loss of use, injury, expenses or consequential loss directly or indirectly caused by the failure or inability of any computer, data processing equipment, media microchip, operating systems, microprocessors, integrated circuit or similar device, or any computer software to correctly recognise any date as its true calendar date or correctly manipulate, interpret or process data as a result of treating any date other than its true calendar date.
  • Any coverage for loss or damage including loss of use, injury or consequential loss directly or indirectly arising from Electro Magnetic Radiation.
  • Personal Injury or Property Damage arising, directly or indirectly, out of, or in any way involving the Insured's Internet Operations.
  • Property Damage to computer data or programs and their storage media arising directly or indirectly out of or caused by the use of any computer hardware or software; the provision of computer or telecommunication services; the use of computer hardware or software belonging to any third party whether authorised or unauthorised including damage caused by any computer virus.
Defined terms (12)
ELECTRONIC DATA
facts, concepts and information converted to a form useable for communications, display, distribution, interpretation or processing by electronic and electromechanical data processing or electronically controlled equipment and includes programmes, software and other coded instructions for such equipment.
INSURED
each of the following is deemed to be an Insured under this policy to the extent set forth: the named Insured specified in the Schedule; all the subsidiary companies (now or hereafter constituted) of the named Insured if their places of incorporation are within Malaysia; every Director, Executive Officer, Employee, Partner or Shareholder of the Insured or of a company designated in paragraph 5.1.2 above but only whilst acting within the scope of their duties in such capacity; every principal, in respect of the liability of such principal arising out of the performance by the Insured or by a company designated in paragraph 5.1.2 above, of any contract or agreement for the performance of work for such principal, to the extent required by such contract or agreement, but limited in all to the extent of coverage and limit of liability as provided for in this policy; every office bearer or member of sporting clubs, canteen and welfare organisations and first aid, fire and ambulance services formed with the consent of the Insured (other than an Insured designated in paragraph 5.1.4) in respect of claims arising from their duties connected with the activities of any such club; any director or senior executive of the Insured in respect of private work undertaken by the Insured's employees for such director or executive.
OCCURRENCE
an event, including continuous or repeated exposure to substantially the same general conditions which results in bodily injury or property damage, neither expected nor intended from the standpoint of the Insured.
INSURED'S PRODUCTS
any goods, products or property after they have ceased to be in the possession or under the control of the Insured, manufactured, constructed, erected, installed, repaired, serviced, treated, sold, supplied, distributed by the Insured (including any container thereof other than a vehicle).
VEHICLE
any type of machine on wheels or on self laid tracks made or intended to be propelled by other than manual or animal power and any trailer or other attachment made or intended to be drawn by any such machine.
WATERCRAFT
any vessel, craft or thing made or intended to float on or in or travel on or through water.
AIRCRAFT
any vessel, craft or thing made or intended to fly or move in or through the atmosphere or space.
POLLUTANTS
any solid, liquid, gaseous or thermal irritant or contaminant, including but not limited to smoke, vapour, soot, fumes, acids, alkalis, chemicals and waste. Waste includes material to be recycled, reconditioned or reclaimed.
POLICY
this document and each memorandum issued by the Company and attached, or intended to be attached, to it.
BUSINESS
shall include: the provision and management of canteens, social, sports and welfare organisations for the benefit of the Insured's employees and first aid, fire and ambulance services and maintenance of the Insured's premises.
Internet Operations
use of electronic mail systems by the Insured or the Insured's employees, including part-time and temporary staff, contractors and others within the Insured's organisation; access through the Insured's network to the world wide web or a public internet site by the Insured's employees, including part-time and temporary staff, contractors and others within the Insured's organisation; access to the Insured's intranet (meaning internal company information and computing resources) which is made available through the world wide web for customers of the Insured or others outside the Insured's organisation; and the operation and maintenance of the Insured's web site.
Electro Magnetic Radiation
magnetic energy, waves, fields or forces generated, produced, distributed, transmitted or maintained by charges, currents, frequencies, energy or forces of electricity.

Frequently asked questions

Is Contractors All Risk insurance compulsory in Singapore?

Contractors All Risk (CAR) is not compulsory under any single Singapore statute, but it is effectively mandatory by contract. The Building and Construction Authority (BCA), HDB, JTC, LTA and most main contractors require CAR cover as a condition of tender award. The required limits and the period of cover are set in the project conditions of contract — for example the PSSCOC (Public Sector Standard Conditions of Contract) and the SIA conditions of contract for private projects.

What does Contractors All Risk insurance cover?

A CAR policy combines two sections. Section 1 — Material Damage covers physical loss or damage to the contract works, materials, temporary works, plant and equipment on or adjacent to the site, from any cause not specifically excluded. Section 2 — Third Party Liability covers legal liability to third parties for bodily injury or property damage arising from the construction works. The cover runs from the start of works (or arrival of materials at site) through to the issue of the completion certificate, plus a maintenance period of usually 12 to 24 months for defect rectification.

Who arranges CAR — the main contractor or the employer?

The conditions of contract decide. Under PSSCOC the Contractor is responsible for taking out CAR in the joint names of the Employer, the Contractor and all sub-contractors. Under the SIA conditions a similar joint-names regime applies. Some bespoke contracts make the Employer responsible for arranging an owner-controlled project insurance programme (OCIP). Read the insurance clause — usually clause 17 or 18 in standard forms — and the contract data sheet to confirm who is responsible.

What is excluded from a Contractors All Risk policy?

Common CAR exclusions include defective design (covered separately by professional indemnity), defective workmanship and materials (only the consequential damage to other works is covered, not the cost of rectifying the defect itself), wear and tear, gradual deterioration, war and nuclear risks, cyber risks, and consequential financial loss with no physical damage. Tunnelling, piling beyond a stated depth, and works in or adjacent to water often require specific extensions and may attract higher deductibles.

How is the CAR sum insured set?

The Section 1 sum insured should equal the full contract sum plus the value of free-issue materials, plus any escalation provision and an allowance for removal of debris and consulting fees. Under-declaring the contract sum triggers average and scales claim payments down. The Section 2 third-party liability limit is set by the project insurance clause — Singapore main contracts typically require S$5m to S$10m of public liability for the project; major infrastructure may require S$25m or more.