Comprehensive protection for construction projects — from groundbreaking to completion.
Building and construction projects involve significant financial investment and complex risks at every stage. A single unexpected event — flooding, fire, accidental damage, or third-party injury — can result in costly delays, legal liability, or total loss of materials and works.
Aiva Insurance Agency works with leading underwriters including Pioneer General Insurance to structure Contractors’ All Risks (CAR) cover tailored to your specific project. Whether you are developing a residential property, commercial building, or infrastructure project, we ensure you are fully protected from the moment construction begins until the project is handed over.
Important Client Obligations
To maintain your cover and ensure valid claims are processed without delay, you are required to:
- Notify us immediately by phone and in writing of any event that may give rise to a claim — within 14 days of the occurrence
- Take all reasonable steps to minimise loss or damage after an incident
- Preserve damaged items for inspection before carrying out repairs (except minor damage)
- Inform the police in cases involving theft or burglary
- Notify us promptly of any material changes to the project scope, timeline, or risk profile
- Ensure a qualified watchman is on site 24 hours a day throughout the construction period
- Maintain adequate fire-fighting equipment on site at all times
Contractors' All Risks (Car) Insurance
Who Is This Policy For?
Who Should Consider This Cover?
This plan is ideal for:
- Property developers constructing residential, commercial, or industrial buildings
- Civil engineering contractors handling roads, bridges, and infrastructure
- Homeowners undertaking major renovations or extensions
- Project owners and principals named in construction contracts
- Contractors required by client contracts to maintain insurance cover
Coverage
WHAT’S COVERED
01.
Core Benefits
- Material Damage
- Third Party Liability
- Contractors' Plant and Equipment
- Debris Removal
- Maintenance Period Cover
- Premium Payment Flexibility (Monthly/Annual)
01.
What's Not Covered
- War, invasion, terrorism, and political risks
- Terminal Illness Benefit
- Nuclear reaction or radioactive contamination
- Wilful acts or wilful negligence by the insured
- Consequential losses including penalties, loss of contract, or delay costs
- Faulty design
- Wear and tear, corrosion, and gradual deterioration
- Loss discovered only at inventory (not during an insured event)
- Vehicles licensed for general road use, waterborne vessels, or aircraft
Your CAR insurance premium is determined by several factors:
Your CAR insurance premium is determined by several factors:
- The total contract value including all materials, labour, and associated costs
- The nature and complexity of the construction works
- The project duration and location
- The level of third party liability cover required
- Site security measures in place (watchmen, fire-fighting facilities, storage arrangements)
Why Choose Aiva for Your CAR Policy?
- Cover commences immediately upon start of works or unloading of materials on site
- Both material damage and third party liability covered under one policy
- Flexible cover periods aligned to your construction programme
- Expediting expenses covered — including overtime, night work, and express freight — up to 20% of loss
- Maintenance visits cover available for up to 6 months post-completion
- Strike, riot, and civil commotion extension available
- Competitive premiums negotiated across Kenya’s leading underwriters
- Claims support and liaison provided by our advisory team throughout
Frequently Asked Questions
When does my CAR cover start?
Cover begins immediately upon commencement of work on site or after the unloading of insured items at the project location — whichever is earlier.
What sum should I insure my project for?
The sum insured should reflect the full contract value at completion, inclusive of all materials, labour, freight, customs duties, and items supplied by the project principal. Under-insurance will reduce any claim settlement proportionally, so it is important to insure for the full and accurate value.
Can I extend cover beyond the original project end date?
Yes, but any extension of the period of insurance requires prior written consent from the insurer. Contact our team as early as possible if your project is running behind schedule.
What happens if I have another insurance policy covering the same risk?
CAR is subject to contribution — if another policy covers the same loss, each insurer pays only their proportionate share of the claim.
Is the policy valid if I have not paid the full premium?
Under Kenyan insurance law (Insurance Act Cap. 487), the insurer only assumes risk upon receipt of the full premium. If you have made a partial payment and a claim arises, the outstanding premium must be settled before the claim can be processed.
What happens if I miss a premium payment?
Most insurers will continue to provide cover so long as your outstanding premium amount is equivalent to less than 3 months premiums. If the grace period lapses, your policy may be suspended or lapse entirely. Reinstatement is usually possible within a set period, subject to the insurer’s conditions. We actively monitor client policies and send renewal and payment reminders to help you stay protected.