The reality of a construction project is the chain: the main contractor, trade subcontractors, their subcontractors in turn – and at the bottom of the chain, often a two-person crew the policy has never heard of. One of CAR's great strengths is that it can bring this whole chain under shared cover – but only if the policy wording actually says so.
- Subcontractors can typically be brought into the CAR's insured circle – the policy's definitions decide.
- Good wording covers the whole chain, not just the direct (named) subcontractors.
- Being included doesn't release the subcontractor from needing their own cover – for plant, tools, and other jobs.
- Keeping a record of the chain (who, doing what, from when) is part of the main contractor's administration.
Why does it pay to include the whole chain?
Because for damage within the insured circle, the policy settles the matter, not a lawsuit. If an included subcontractor damages the works, that's a property-section matter – the insurer typically doesn't pursue its own insured. If the chain is left outside the policy, the same damage becomes a recourse matter: the insurer pays out, then recovers from whoever caused it – often a small firm at the bottom of the chain, for whom this can be the end of the road. Including the chain, then, isn't generosity, it's project protection: who is liable for damage caused by a subcontractor?
What does the policy say – and what should you check?
The key is how the insured circle is defined. The strong version covers the whole chain ("all sub- and sub-subcontractors involved in delivering the project"); the weaker version covers only named or direct subcontractors. The difference is stark at claim time: a crew working at the third tier of the chain is included under one wording and not under the other. So when checking, the question isn't whether it "extends to subcontractors", but how far down it extends – following the routine from how to read a CAR wording, look for this in the schedule and the definitions.
What being included doesn't solve
A subcontractor included in the CAR is protected for damage on the project – but their own plant and tools (if not listed in the policy), their work on other sites, and their general operations still call for their own cover: the subcontractor's perspective, standalone liability insurance. As a subcontractor, the right question is therefore twofold: "Am I included in the project policy?" and "What do I need my own cover for?"
The main contractor's routine
Standing at the head of the chain, keeping the cover in good order is a matter of administrative discipline: an up-to-date subcontractor list, handling new arrivals (whether notification to the insurer is needed, as the wording requires), consistent handling of the insurance points in subcontractor contracts, and requesting certificates wherever the subcontractor's own cover is also expected. A tick-box aid has been prepared for this: the chain checklist. From the principal's side, it's the same checking question: what should you look for on the contractor's policy?
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