Fifteen terms, one sentence each – that's all it takes for a CAR/EAR quote or wording to be readable on first sight. The fuller, alphabetical collection lives in the glossary; this is the pocket edition.
- CAR/EAR language isn't complicated, just terse: 15 terms and the essentials are readable.
- The definitions are in plain language – the wording always provides the legal precision.
The framework
CAR: all-risk insurance for building works – protecting the works under construction. EAR: the same for erection works, with testing-and-commissioning cover that's typically time-limited. All-risk: it isn't the covered losses that are listed, but the exclusions – whatever isn't excluded is typically covered. Annual open cover: a contract covering the company's jobs that start during the year, according to the notification rules. Section: a self-contained part of the policy with its own limit – Section I property, Section II liability.
Value and money
Sum insured: the works' full reinstatement value – the ceiling of the insurer's liability. Under-insurance: if the sum insured is below the real value, the settlement is typically reduced proportionally. Deductible: the part of the loss the policyholder carries themselves – it can vary by type of loss. Sub-limit: a smaller cap set for a particular type of loss within the main sum insured.
The parties
Policyholder: the one who takes out the contract and pays the premium. Insured: the one whose interest the cover protects – for CAR, typically the principal, the main contractor and the subcontractors brought in together. Third party: someone outside the project – their loss is the liability section's business.
Time
Period of cover: the period during which the insurer stands behind the risk – typically from taking possession of the site to handover. Maintenance period (maintenance): the post-handover extension for the period of call-backs and loss traceable to a construction defect. Endorsement: a numbered addition attached to the wording – the language of tailoring; most extensions are added on this line.
Once the 15 terms sit comfortably, the next step is the reading routine: how to read a CAR wording – and for international projects, there's the EN–DE–HU pocket dictionary.
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