The Complete Guide to Contractor All Risk Insurance: Expert Tips from Thai Brokers
When managing a construction project in Thailand, having Contractor All Risk Insurance is essential to protect against material damage, delays, and liabilities. Both project owners and contractors face complex risks, which is why partnering with professional Thai brokers who offer expert insurance service ensures your coverage is comprehensive and aligned with your project’s specific needs.
What is Contractor All Risk (CAR) Insurance?
Contractor All Risk (CAR) Insurance—also known as construction insurance—protects your project from the start of site work to final handover. It’s designed to safeguard against both physical and financial risks during construction.
Typical CAR insurance coverage includes:
- Damage or loss to construction works, materials, and equipment
- Third-party liability for injury or property damage caused by construction activities
- Optional extensions, such as cover for materials in transit, contractor-owned equipment, professional fees, or delays in completion
These layers of protection can be complex to navigate. That’s where Thai brokers step in—with a clear understanding of construction risks and local market practices.
Why Thai Brokers Matter for CAR Insurance
Buying CAR insurance isn’t just about selecting a policy—it’s about matching the coverage to your project. Here’s how Thai brokers add real value:
1. Tailored Insurance Service
A skilled broker evaluates your project’s size, location, construction type, duration, equipment used, and subcontractor arrangements. They help you set appropriate sums insured, deductibles, and necessary policy extensions—ensuring every aspect of your project is covered.
2. Policy Comparison and Negotiation
Brokers work with multiple insurers and compare policy wordings side by side. They highlight exclusions—such as design defects, faulty workmanship, or maintenance limitations—and identify which insurer offers the most comprehensive protection.
3. Ongoing Support and Claims Assistance
Construction projects often change in scope or schedule. Thai brokers provide continuous insurance service by assisting with policy updates, contract adjustments, and claims management when incidents occur.
Key Considerations Before You Buy
To make informed decisions, make sure you and your broker review these critical items:
- Scope of works and contract value: Ensure the policy matches the contract value and captures all works in progress.
- Exclusions and definitional clarity: Some CAR policies exclude certain risk events, or limit coverage during the maintenance period post-completion.
- Delay in Completion / Advance Loss of Profits: If your project is time-sensitive, look for cover that protects against financial losses due to delay.
- Plant, tools, transit and materials: Check whether these are included or offered as add-ons.
- Contractual obligations: Many contracts require CAR insurance. A broker can align your insurance service with both your contractual and regulatory requirements.
Securing the right CAR insurance for a Thai construction project isn’t just a matter of ticking a box—it’s about aligning the policy with the project’s risks, timeline and financial exposures. By partnering with trusted Thai brokers, you benefit from expert coverage advice, tailored insurance service and ongoing support—so you can proceed with confidence knowing that your project is protected.
FAQs
Q: Is Contractor All Risk Insurance mandatory in Thailand?
A: While not always legally mandated, many construction contracts in Thailand do require CAR insurance as a contractual condition, making it de facto essential for many projects.
Q: Does CAR insurance cover delays in completion?
A: It can, but only if a policy includes ‘Delay in Completion’ or ‘Advance Loss of Profits’ cover as an extension—so you must check the wording with your broker.
Q: Why work with a broker instead of buying direct?
A: A broker provides independent advice, compares multiple insurers, helps tailor policy terms to your specific project and offers ongoing service—not just at policy purchase but throughout the project lifecycle.
