How is CAR premium calculated?

Based on contract value times rate. Rate depends on project type, height, duration, location (coastal or inland), contractor experience, and BOQ risk mix.

Who should buy CAR, the owner or the contractor?

Typically the main contractor takes out the policy, naming the principal or developer, subcontractors and consultants as co-insureds.

What is the maintenance period?

12 to 24 months after practical completion, during which the contractor remains liable for defects. Must be included in CAR cover.

Are subcontractors covered?

Yes automatically as co-insureds, provided they work on the declared site and are within the declared contract value.

Does CAR cover design defects?

Standard CAR excludes design defects. LEG2 and LEG3 clauses extend cover to consequential damage from defective design at higher premium.

Is existing surrounding property covered?

Standard exclusion. The Existing Property of Principal extension covers damage to existing structures from construction activity up to declared limit.

What happens on project extension or delay?

Notify immediately. Premium adjustment pro-rata plus declaration endorsement. Late notification can void claims.

Does CAR cover testing and commissioning?

CAR includes 4 weeks standard. EAR includes 4 to 12 weeks. Extend via endorsement for longer testing phases.

Is plant and equipment covered?

Contractor-owned plant on site is covered up to declared value. Hired-in plant requires the Hired-in Plant extension or a separate CPM policy.

What is the claim process?

Notify insurer and developer within 7 days. Surveyor appointed. Interim payments are available. Final settlement on completion of repairs.

Does CAR cover design-build contracts?

Yes, but design defect risk is elevated. Request LEG3 consequential wording.

Are EPC contracts covered by CAR or EAR?

Hybrid. Usually CAR with erection extension, or full EAR for plant-heavy EPC (refineries, power stations).

Does it include labour camp damage?

Declare labour accommodation separately. Typically covered under temporary works if within site boundary.

Is marine import transit covered?

Standard CAR covers only on-site. Add Marine plus 50/50 Clause to seamlessly cover imports until site arrival.

Who issues certificates for Dubai Municipality?

Insurer issues stamped certificate plus policy schedule naming Dubai Municipality as additional interest. eSanad delivers within 24 hours.

Can cover be cancelled mid-project?

Only with the principal's consent. Pro-rata refund minus short-period penalty.

How long does quoting take?

Up to AED 50M contract value: 24 hours with BOQ and contract copy. Above AED 100M: 3 to 5 days, often with survey.

How is CAR premium calculated?

Based on contract value times rate. Rate depends on project type, height, duration, location, contractor experience, and BOQ risk mix.

Who should buy CAR, the owner or the contractor?

Typically the main contractor takes out the policy, naming the principal or developer, subcontractors and consultants as co-insureds.

What is the maintenance period?

12 to 24 months after practical completion, during which the contractor remains liable for defects. Must be included in CAR cover.

Does CAR cover design defects?

Standard CAR excludes design defects. LEG2 and LEG3 clauses extend cover to consequential damage from defective design at higher premium.

Does CAR cover testing and commissioning?

CAR includes 4 weeks standard. EAR includes 4 to 12 weeks. Extend via endorsement for longer testing phases.

Is plant and equipment covered?

Contractor-owned plant on site is covered up to declared value. Hired-in plant requires the Hired-in Plant extension or a separate CPM policy.

Is marine import transit covered?

Standard CAR covers only on-site. Add Marine plus 50 or 50 Clause to seamlessly cover imports until site arrival.

Who issues certificates for Dubai Municipality?

Insurer issues a stamped certificate plus policy schedule naming Dubai Municipality as additional interest. eSanad delivers within 24 hours.

How long does quoting take?

Up to AED 50M: 24 hours with BOQ and contract copy. Above AED 100M: 3 to 5 days often with survey.

Bindable Quotes from 0.08 Percent

Contractor All Risk Insurance UAE 2026 from 0.08 Percent of Contract Value

Protect villas, towers, infrastructure and plant erection against physical damage and third-party liability for the full construction period plus maintenance. Dubai Municipality, ADM, Trakhees, Dubai South and Expo City accepted. Compare 35+ approved insurer partners in a single quote.

35+

Approved Partners

1.5 M+

Trusted Customers

1.5 M+

Policies Sold

Proposal Details

CBUAE Licence 273

DHA Broker BRK-0017

35+ Approved Insurer Partners

DM/ADM Stamped Certificates in 24 Hours

TPL up to AED 100M

Sanad Club Rewards

CBUAE Licence 273

DHA Broker BRK-0017

35+ Approved Insurer Partners

DM/ADM Stamped Certificates in 24 Hours

TPL up to AED 100M

Sanad Club Rewards

CBUAE Licence 273

DHA Broker BRK-0017

35+ Approved Insurer Partners

DM/ADM Stamped Certificates in 24 Hours

TPL up to AED 100M

Sanad Club Rewards

CBUAE Licence 273

DHA Broker BRK-0017

35+ Approved Insurer Partners

DM/ADM Stamped Certificates in 24 Hours

TPL up to AED 100M

Sanad Club Rewards

Contractor All Risk Insurance UAE 2026 from 0.08 Percent

Contractor All Risk (CAR) and Erection All Risk (EAR) in the UAE. Protect your projects with bindable quotes from 0.08% of contract value. Dubai Municipality and ADM approved certificates in 24 hours.

37Market Partners

0.08%Starting Rate

AED 100MMax TPL Limit

CAR and EAR are project-specific policies covering physical loss or damage to contract works and third-party liability. Essential for building permits from Dubai Municipality (Trakhees), ADM, Dubai South, and Expo City. eSanad provides specialist placements for villas, high-rise towers, infrastructure, and oil & gas EPC contracts. Licensed by CBUAE (Licence 273) and DHA (BRK-0017).

2026 CAR Pricing Snapshot

Project Type	Contract Value (AED)	Typical Rate	Premium (AED)
Villa (Low-rise)	3,000,000	0.08%	2,400
Townhouse Cluster	15,000,000	0.10%	15,000
Commercial G+4	25,000,000	0.13%	32,500
Hotel G+20	200,000,000	0.15%	300,000
High-rise G+40	500,000,000	0.18%	900,000
MEP Fit-out	20,000,000	0.12%	24,000
Infrastructure (Roads)	80,000,000	0.15%	120,000
Oil & Gas EAR	150,000,000	0.22%	330,000

Disclaimer: Premiums indicative, subject to underwriting, details, T&Cs.

Why Contractors Choose eSanad

Instant Quote Engine: Fast villa and low-rise CAR quotes with BOQ upload.
Developer Compliance: Automatic endorsements for Emaar, Nakheel, Aldar, Meraas, Dubai South, and Expo City.
Express Certification: Dubai Municipality and ADM stamped certificates within 24 hours.
Senior Brokerage: Large projects (AED 100M+) handled by senior construction specialists.
Claims Advocacy: In-house team coordinating with loss adjusters and principals.
Zero Broker Fee: No additional cost to the contractor; premium paid directly on binding.

Coverage Summary

Section I - Material Damage

Covers physical loss or damage to contract works, temporary buildings, and equipment during construction and maintenance.

Section II - Third Party Liability (TPL)

Covers legal liability for injury or property damage. Typically AED 10M up to AED 100M for large projects.

Common Extensions

Maintenance and defects liability (12-24 months).
Delay in Start-Up (DSU) / Advance Loss of Profits.
LEG3 extension for defective design consequential cover.
Cross-liability between principal and contractors.
Primary and non-contributory clauses.

EEAT: Trust, Expertise & Practical Tips

Experience: Construction placements for everything from individual villas to G+40 towers and utility-scale infrastructure since 2010.

Expertise: CII-qualified engineering team with site visit capabilities across all emirates.

Broker Tips for Contractors

Tip 1: Upload a Full BOQ. Insurers price on the mix of structural vs. fit-out works. A summary figure often leads to loaded rates. A full BOQ can cut premiums by 10-25%.
Tip 2: Match DSU to Finance. For developers, ensure Delay in Start-Up indemnity matches your loan repayment timeline, not just the construction end date.
Tip 3: Request LEG3 for Design-Build. Standard CAR excludes design defects. LEG3 endorsements protect against consequential damage from design errors—vital for EPC contracts.

Frequently Asked Questions

Is CAR insurance mandatory in UAE?

Yes. It is required by Dubai Municipality, ADM, Trakhees, and all master developers before a building permit can be issued.

Who should buy CAR, the owner or contractor?

Typically the main contractor takes out the policy, naming the principal, subcontractors, and consultants as co-insureds.

What is Delay in Start-Up (DSU)?

DSU (or ALoP) covers the developer's revenue loss if an insured physical damage claim delays the project completion date.

Does CAR cover workers' injury?

No. Worker injury requires a separate Workmen's Compensation policy, which is mandatory under UAE Labour Law.

How long does it take to get a quote?

For projects up to AED 50M, we typically provide quotes in 24 hours. Larger projects above AED 100M take 3-5 days.

Explore More Solutions

Bindable Quotes from 0.08 Percent

Contractor All Risk Insurance UAE 2026 from 0.08 Percent of Contract Value

35+

Approved Partners

1.5 M+

Trusted Customers

1.5 M+

Policies Sold

Proposal Details

CBUAE Licence 273

DHA Broker BRK-0017

35+ Approved Insurer Partners

DM/ADM Stamped Certificates in 24 Hours

TPL up to AED 100M

Sanad Club Rewards

CBUAE Licence 273

DHA Broker BRK-0017

35+ Approved Insurer Partners

DM/ADM Stamped Certificates in 24 Hours

TPL up to AED 100M

Sanad Club Rewards

CBUAE Licence 273

DHA Broker BRK-0017

35+ Approved Insurer Partners

DM/ADM Stamped Certificates in 24 Hours

TPL up to AED 100M

Sanad Club Rewards

CBUAE Licence 273

DHA Broker BRK-0017

35+ Approved Insurer Partners

DM/ADM Stamped Certificates in 24 Hours

TPL up to AED 100M

Sanad Club Rewards

Contractor All Risk Insurance UAE 2026 from 0.08 Percent

37Market Partners

0.08%Starting Rate

AED 100MMax TPL Limit

2026 CAR Pricing Snapshot

Project Type	Contract Value (AED)	Typical Rate	Premium (AED)
Villa (Low-rise)	3,000,000	0.08%	2,400
Townhouse Cluster	15,000,000	0.10%	15,000
Commercial G+4	25,000,000	0.13%	32,500
Hotel G+20	200,000,000	0.15%	300,000
High-rise G+40	500,000,000	0.18%	900,000
MEP Fit-out	20,000,000	0.12%	24,000
Infrastructure (Roads)	80,000,000	0.15%	120,000
Oil & Gas EAR	150,000,000	0.22%	330,000

Disclaimer: Premiums indicative, subject to underwriting, details, T&Cs.

Why Contractors Choose eSanad

Instant Quote Engine: Fast villa and low-rise CAR quotes with BOQ upload.
Developer Compliance: Automatic endorsements for Emaar, Nakheel, Aldar, Meraas, Dubai South, and Expo City.
Express Certification: Dubai Municipality and ADM stamped certificates within 24 hours.
Senior Brokerage: Large projects (AED 100M+) handled by senior construction specialists.
Claims Advocacy: In-house team coordinating with loss adjusters and principals.
Zero Broker Fee: No additional cost to the contractor; premium paid directly on binding.

Coverage Summary

Section I - Material Damage

Covers physical loss or damage to contract works, temporary buildings, and equipment during construction and maintenance.

Section II - Third Party Liability (TPL)

Covers legal liability for injury or property damage. Typically AED 10M up to AED 100M for large projects.

Common Extensions

Maintenance and defects liability (12-24 months).
Delay in Start-Up (DSU) / Advance Loss of Profits.
LEG3 extension for defective design consequential cover.
Cross-liability between principal and contractors.
Primary and non-contributory clauses.

EEAT: Trust, Expertise & Practical Tips

Experience: Construction placements for everything from individual villas to G+40 towers and utility-scale infrastructure since 2010.

Expertise: CII-qualified engineering team with site visit capabilities across all emirates.

Broker Tips for Contractors

Tip 1: Upload a Full BOQ. Insurers price on the mix of structural vs. fit-out works. A summary figure often leads to loaded rates. A full BOQ can cut premiums by 10-25%.
Tip 2: Match DSU to Finance. For developers, ensure Delay in Start-Up indemnity matches your loan repayment timeline, not just the construction end date.
Tip 3: Request LEG3 for Design-Build. Standard CAR excludes design defects. LEG3 endorsements protect against consequential damage from design errors—vital for EPC contracts.

Frequently Asked Questions

Is CAR insurance mandatory in UAE?

Yes. It is required by Dubai Municipality, ADM, Trakhees, and all master developers before a building permit can be issued.

Who should buy CAR, the owner or contractor?

Typically the main contractor takes out the policy, naming the principal, subcontractors, and consultants as co-insureds.

What is Delay in Start-Up (DSU)?

DSU (or ALoP) covers the developer's revenue loss if an insured physical damage claim delays the project completion date.

Does CAR cover workers' injury?

No. Worker injury requires a separate Workmen's Compensation policy, which is mandatory under UAE Labour Law.

How long does it take to get a quote?

For projects up to AED 50M, we typically provide quotes in 24 hours. Larger projects above AED 100M take 3-5 days.