A CAR/EAR wording is not a novel, but it isn't unreadable either: if you know where to start, the essence emerges within twenty minutes. This quick guide shows in five steps what to look for and where – written not for lawyers, but for decision-makers.
- Step 1: the policy schedule – who is the policyholder, who is insured, what it covers and for how long.
- Step 2: the sections and their limits – the property and liability parts live separately.
- Step 3: the list of endorsements – this is where it's decided what has been added.
- Step 4: the exclusions – and the expectations attached to them.
- Step 5: the deductibles and the claim notification rules.
1. The schedule: who, what, until when
The first page settles most disputes: who is the policyholder, who are the insureds (does it extend to subcontractors?), what is the insured activity and site, and from when to when the cover runs. If someone or something is missing here – say, the bottom of the chain or the existing building – no amount of fine wording further on will make up for it.
2. Sections and limits
The two sections work with separate limits. On the property side, the sum insured should track the full value of the works; on the liability side, the limit should match the risk of the surroundings. Watch the sub-limits too: a single type of loss (theft or water damage, for instance) may carry a smaller cap within the main sum insured.
3. Endorsements: the language of tailoring
The CAR/EAR world is built from an international set of endorsements – the numbered clauses in the wording show what's been included: the maintenance period, storage, overtime and express-freight costs, earthquake, strike risks. You don't need to know them all: what you need to check is whether the switches relevant to the project's actual risks have been included. A good starting point for this: the cover map.
4. Exclusions – and the expectations attached to them
The exclusions list has two layers: some things are out for good (liquidated damages, wear and tear – deliberate acts are typically a separate ground for exemption), and some are conditional – theft loss may be tied to security, storm loss to protective measures, water damage to a pumping and dewatering routine. These latter ones affect day-to-day site work, so it's worth taking them down to site-manager level: loss-prevention checklist, full map: exclusions article.
5. Deductibles and claims rules
The deductible can vary by type of loss – a low premium often hides a high deductible, which is what the trap of the cheap quote is about. Finally, the claim notification rules: what to report, within how much time, and by what method. In a claim, the primary route is always the insurer's claims line or online portal – the process is shown in the claim notification article. If questions remain after reading the wording, that's exactly what the free consultation is for.
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