Contractors All Risks (CAR):

Written in connection with construction projects outside the United States, these nonstandard policies typically consist of three coverage parts.

1. Analogous to builder’s risk policies issued in connection with domestic construction projects.
2. Provides liability insurance for third party
   Bodily
   Injury(Bl) and Property
   Damage(PD).
3. Optional coverage for losses arising out of a Delay In Start-Up(DSU) due to an insured loss.

Example:

• Suppose you are a contractor hired to build a new hotel in a foreign country. During the construction, a storm causes severe damage to the building and the material on site. Your CAR policy would cover the cost of repairing or replacing the damaged property, as well as any additional expenses incurred due to the delay in completion.