Many people think of construction insurance as the contractor's box to tick – yet CAR/EAR is just as much the principal's genre. Losses don't pick sides by role; the cover, however, has to follow exactly who is risking what in the project. Let's look at the two perspectives separately.
- For the contractor, CAR/EAR protects the balance sheet and is a condition of entry to the market: meeting tender and client requirements.
- For the principal, it protects their own money: the advance payment, interim invoices and the value already built in need cover standing behind them.
- A subcontractor can typically be brought into cover through the main contractor's policy – but this is worth knowing for certain, not by hearsay.
- For a private client building a home, the question calls for honest judgement – small jobs don't always need separate project cover.
The contractor's perspective
As a main or general contractor, the works under construction are effectively the company's largest exposed asset: value already invoiced through interim bills but not yet handed over can be damaged in a single storm, fire or theft. CAR/EAR takes this balance-sheet risk off the table, and tenders and client contracts increasingly expect it as standard – for the specific requirement, the tender documentation always prevails. A company running several jobs a year will find the annual open cover the natural route.
The principal's perspective
As a principal, it's easy to fall into the trap of thinking "insurance is the contractor's business". Yet ultimately, the loss lands on your investment: the advance paid, the value already built in, the extra cost from a delay all sit on your side of the table. That's why it's in the principal's interest to have real, properly sized cover in place for the project – whether you take out the policy yourself covering the whole contracting chain, or expect it from the contractor and check it. The two models compared: who should take out the CAR?
The subcontractor's perspective
As a subcontractor, the first question is: does the main contractor's policy extend to you? You can typically be brought into the insured circle – but this is worth knowing for certain, not by hearsay, because the bottom of the chain is often left without cover. Your own tools and equipment, and your liability on other jobs, call for your own cover, though. Details: the subcontractor chain.
And the private client?
For building a family home or renovating at home, the picture is more nuanced: for small jobs, the pairing of the contractor's liability insurance and home insurance may be enough, but for higher-value work, project CAR is worth considering there too. Two honest articles cover this: small project – is separate insurance needed? and renovation through the owner's eyes.
The common ground
Whichever role you sit in at the table: good cover isn't a casting dispute, it's a shared interest. A project is protected when it's insured exactly once, properly sized, and every party knows their place – that's what the contract, the certificate and sensible coordination settle between them. If you need help with this: the target-group selector page guides you through both routes.
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