Contractors’ all risks insurance

The first record of insurance specifically for building structures, contractors’ all risks insurance (CAR), dates back to 1929 and the construction of Lambeth Bridge over the Thames in London. In Germany, this type of insurance was introduced in 1934 under the name of "Bauleistungsversicherung", when severe restrictions were imposed on the possibilities for creating reserves for outstanding losses to the detriment of the building contractors.

The insurance terms and conditions were derived from erection all risks insurance, with which the companies had already acquired ten years of experience. Nowadays, contractors’ all risks insurance cover is increasingly extended by a corresponding loss of profits cover, which provides compensation for the financial losses suffered by principals as a result of delays in completion caused by property damage.

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