Contractors' all risks (CAR) insurance is an insurance policy that provides coverage for property damage and third-party injury or damage claims, the two primary types of risks on construction projects. Damage to property can include improper construction of structures, damage that happens during a renovation and damage to temporary work erected on-site.
Third parties, including subcontractors, may also become injured while working at the construction site. CAR insurance coverage is common for such construction projects as buildings, water tanks, sewage treatment plans, flyovers and airports.