Contractors All Risk Insurance covers damage to property, such as building works or contract works that are being carried out, existing premises of the principal etc. In addition, the policy can also provide coverage for third party liabilities arising out of negligence on the project site.
The CAR policy provides coverage for various parties involved in the contract starting from the principal to the main contractors, sub-contractors, architects, engineers, project management consultants etc. This is generally done on a named basis, but it can also be done on an unnamed basis exceptionally for sub-contractors.
This question is regularly posed by both builders and property owners and the answer is quite simple: it is the responsibility of the property owner to effect and maintain insurance on their property, unless the building contract states otherwise.