Partner for BiH
Construction & Erection All Risks (CAR/EAR)
Construction and erection all risks insurance (CAR/EAR) is comprehensive "all-risks" cover that protects all parties to a construction project — employers, main contractors, subcontractors, designers and supervisory bodies — throughout the entire duration of a civil engineering or erection project.
CAR (Construction All Risks) covers civil works such as buildings, infrastructure and earthworks, while EAR (Erection All Risks) covers the erection of plant, production lines, machinery and steel structures, including test operations; on larger projects the two policies are most often combined. The principle is "all risks": cover applies to all sudden and unforeseen loss events that are not expressly excluded by the policy, removing the need to specify each risk individually.
The policy comprises several modules selected according to the insured's needs and covers both the works and materials themselves and liability to third parties, site equipment and the financial consequences of project delay. It is advisable to arrange the insurance before works begin in order to avoid disputes with the insurer over the payment of claims.
Who it is for
Employers, main contractors, subcontractors (including those not named individually in the contracts), designers and supervisory bodies. The cover applies to new builds, refurbishments, technological installations and the development of transport infrastructure. The insurance may be arranged by either the employer or the contractor.
Example projects
CAR — buildings, roads, bridges and port and earthworks construction; EAR — power plants, manufacturing and processing facilities, water and wastewater plants and telecommunications structures (e.g. the erection of antenna and signal towers). On a large project, CAR typically covers the structure of the building itself, while EAR covers the sophisticated equipment installed within it.
Real-world examples
If a fire damages plant and delays the commissioning of a production facility by four months, DSU/ALOP cover indemnifies the lost revenue or debt-servicing costs over that period of delay.
Key notes
The policy is built modularly — cover is tailored to the specific project and the needs of each party. Cover can also apply outside the territory of BiH for domestic firms carrying out works abroad; partially completed structures and erection projects are also insurable. Project financiers (banks, development agencies, export-credit institutions) often require evidence of CAR/EAR insurance as a condition of the loan or project financing — without this insurance, many infrastructure projects cannot secure funding.
Our approach
As an independent broker, VIPOX analyses the risks of each specific project in detail and assembles the optimal scope of cover — modules and extensions tailored to the employer and the contractors. We obtain and compare insurers' quotations, negotiate terms and represent your interest throughout the project, including claim notification and recovery. Alongside our local market and regulatory knowledge, as AON's partner for BiH we also provide access to the international market for large and complex projects.