For anyone looking at a CAR quote for the first time, the most important point of orientation is the policy's two-part structure: Section I (property) and Section II (liability). The two deal with different kinds of loss, with different logic and different limits – and most misunderstandings come from expecting one section to do the other's job.
- Section I is your own side: the works under construction, the materials, the temporary works – in other words, what's yours in the project.
- Section II is damage caused outward: third-party property and bodily injury.
- The section structure, limits and deductibles vary by insurer – they're "typically" similar, but not in the details.
- Section II does not replace the company's own liability insurance.
Section I: the works and what belongs to them
The property section is built on the contract works: the value of the work carried out and the materials built in, growing as the project progresses. This is where temporary works attach – scaffolding, formwork, containers, temporary utilities – where construction plant is added by endorsement, and where existing property can also be brought in, if work is being carried out on an existing building. The section follows all-risk logic: it covers sudden, accidental loss, within the boundaries of the exclusions list.
Section II: when the loss goes outward
The liability section steps in when the construction activity causes loss to someone else: the neighbouring building cracks during the foundation works, an object falls from the scaffolding, a utility line is damaged. It deals with both property damage and bodily injury, with its own limits and deductible. An important feature is that the section is tied to the project: it applies on that site, for that period. It does not replace the general professional liability insurance that accompanies the company as a whole – the two complement each other.
Why does the split matter?
Because in a claim, the first question is always: whose loss is it? If a half-finished floor slab lets in water, that's a Section I matter; if the neighbour's living-room wall cracks, that's Section II's. The limits of the two sections don't "cross over": a high property limit is no help if the liability part is undersized – and vice versa. That's why our comparison table treats the two sections as separate rows when comparing quotes.
What to watch for at inception
There are three typical decision points. First: the sum insured under the property section should track the full value of the works – under-insurance can trigger a proportional settlement. Second: the liability limit should match the surroundings – an infill site in a city centre carries different stakes than a greenfield one. Third: the extensions (existing property, maintenance period, storage) should fit the project's actual course. These aren't extras – they're the essence of structuring the cover, which is what the needs-assessment article is about.
A question tailored to your own project? Book a free 20-minute project consultation →
