Contractor All Risk Insurance, Construction and Engineering Insurance arranged by ACPG Management Sdn Bhd


Contractor All Risk Insurance (CAR),

Erection All Risk Insurance (EAR)

Public Liability Insurance (PL)

Workmens Compensation Insurance (WC)

Foreign Workers Compensation Scheme Insurance

Construction & Engineering Insurance

Construction Insurance

Arranged by

ACPG Management Sdn Bhd (Insurance Biz since year 1989)

+603-92863323, +6011-12239838

Construction Insurances Explained – Malaysia Contractors’ All Risks (CAR) Insurance and Malaysia Erection All Risk Insurance (EAR)

What is ‘Contractors’ All Risks (CAR) Insurance and Erection All Risk Insurance (EAR) ?

Contractors’ All Risks (CAR),Erection All Risk Insurance (EAR) insurance is an insurance policy that provides coverage for both damage to a property and third-party injury or damage claims. Contractors’ all risk (CAR) ,Erection All Risk Insurance (EAR) insurance policies are considered non-standard insurance policies.

Construction projects typically involve two primary types of risk: damage to the property, and third-party claims of injury or damage.

Damage to the property could include the structure not being properly constructed, or receiving damage during a renovation. Third-parties, including subcontractors, may become injured while working at the construction site.

Contractors’ all risk (CAR) insurance, Erection All Risk Insurance (EAR) bridges these two risks into a common policy, and helps cover the gap between exclusions that would otherwise exist when using separate policies.

BREAKING DOWN ‘Contractors’ All Risks (CAR) Insurance, Erection All Risk Insurance (EAR)

CAR and EAR insurance is typically taken out jointly by both the contractor and the employer, with other parties such as financing companies having the option of being named to the policy. Because multiple parties are included in the policy they each retain the right to file a claim against the insurer, although all parties also have the duty of informing the insurer of any injuries and damages that may result in a claim.

The goal of using a CAR & EAR insurance policy is to ensure that all parties are covered on a project, regardless of the type of damage to the property or who caused the damage. Insurers who underwrite this type of policy lose the right to subrogation, meaning that if it pays out funds to one party in the contract then it cannot seek to recover those funds from another party in the contract.

For example, if the owner of a large building and the contractor working on the building are on the same CAR & EAR policy, any costs of damage to the building caused by the contractor can be recovered by the building owner when a claim is filed. The insurer, however, cannot seek to recover funds from the contractor.

Risks often covered under a CAR & EAR policy include fire, flood, wind, earthquakes, water damage and mold, construction faults, and negligence. They typically do not cover normal wear and tear, willful negligence, or poor workmanship.

Malaysia Contractors’ All Risks (CAR) Insurance, Malaysia Erection All Risk Insurance (EAR) Definition

Construction Insurances Explained – Contractors’ All Risks Insurance, Erection All Risk Insurance (EAR)

Contractors’ All Risks Insurance (CAR), Erection All Risk Insurance (EAR)

There are several terms used in the insurance world that mean different things to different people and one of these is Contractors’ all risks (CAR) insurance and Erection All Risk Insurance (EAR).

The term is sometimes used to refer to both the material damage and liability covers required by a Contractor.

Most insurance practitioners would regard CAR and EAR as referring only to the material damage cover on the contract works unless the real intention was obvious from the rest of the text.

Anyone using the term, whether verbally or in writing, should make their intention clear, so as to avoid any ambiguity in interpretation.

CAR and EAR covers what is stated within the actual insurance policy for which the premium is paid. The Employer has the opportunity to specify his requirements as to what is to be included within the CAR and EAR within the contract if the Contractor is responsible for the provision of such insurance alternatively the Employer specifies the cover within the policy he takes out where the Contractor is not obligated to provide insurance under the Contract.

A CAR & EAR policy provides insurance coverage when the Works being constructed, as defined in the Contract, are damaged by an insured peril and require replacing and/or repairing. It is normal for the Contract to stipulate who will provide this cover.

If it were the Contractor then it would be normal for them to take out a specific policy to cover the project or alternatively if available to them add it to a policy covering all their contracts up to a specific limit. In the event the responsibility should fall upon the Employer then cover would normally be under a policy arranged specifically for that project.

When arranging the CAR and EAR coverage for a project it is essential that care be taken in identifying the correct Contract Value, Construction Period, Defects Liability Period and Description of the Works.

The policy will normally cover any physical loss or damage unless the cause is specifically excluded, thus the term ‘All-Risks’ whilst commonly used, is to some extent, misleading. Nevertheless the cover is very wide and embraces protection against fire, aircraft, explosion, earthquake, riot, malicious damage, storm, flood, burst pipes, impact and other accidental damage.

However, CAR and EAR policies can be issued covering loss or damage by particular and specified perils, e.g. fire, flood, storm. In both cases the policy should generally be extended to provide protection in respect of damage by terrorists where such is commercially available.

In addition material damage to the Works or the machinery being erected CAR and EAR generally includes coverage for third-party liability for bodily injury and property damage to the surrounding properties.


The policy can in some circumstances be extended to include consequential losses or losses due to delay in start-up following loss or damage under material damage section.

This cover is also called advanced loss of profit.

Either way it is imperative that the parties fully understand what exclusions apply or which perils are listed to ensure that the cover gives sufficient protection to the Employer and the Contractor.

The Sum to be insured under CAR and EAR should be adequately calculated and must include at least the Contract Value, value of Contractors’ plant and machinery, value of Employers existing property, estimated cost of debris removal, value of all temporary facilities, tax and an allowance for inflation.

In addition it is wise to make sure that on site as well as offsite storage facilities are included under the policy together with the value of any free issue materials where the Employer transfers the risk to the Contractor under the Contract.

The policy should always be in the joint names of the Employer and Contractor although the Contract may stipulate that the Bank or Financing institutions are also named in the policy, depending upon their specific requirements for providing project financing.

Joint names insurance is where two or more parties (for example the Employer and the Contractor) are jointly insured under a single policy.

Each party has legal rights under the policy and can claim against the insurer, but the insurer has no right of subrogation against the other insured party.

It is important to remember that each party is bound by the normal rules, and to avoid any difficulties each should individually comply with the duties of disclosure and notification.

Having an interest noted on a policy is very different and is rarely an acceptable substitute for a joint names policy.

A third-party is not a party to the contract of insurance, and thus cannot claim against the insurer. Similarly, it does not prevent the insurer from exercising rights of subrogation against the third-party.

PAM, IEM, FIDIC and generally most standard forms of contract contain fairly detailed provisions for property and liability insurance. Generic amendments to these insurance provisions are not normally essential, however, discreet changes may be required depending on the nature of a specific project (for example, amending the definition of joint names insurance policy to include the project funders, or to reconcile the standard provisions with a project insurance policy taken out by the Employer).

All CAR adn EAR policies will have an excess that will be deducted from any claim settlement. On occasions insurers will apply more than one excess under a policy for specific losses where a certain risk warrants such and additional excess being imposed.

In addition generally most policies include exclusions for which extensions of CAR and EAR coverage maybe granted or included within the CAR and EAE coverage of the CAR and EAR policy may be extended to cover such as:

(A) professional fees;

(B) automatic reinstatement of the policy limit following a loss;

(C) debris removal;

(D) free issue materials;

(E) discovery of munitions of war;

(F) inflation clause;

(G) plans and documents;

(H) others.

Individual insurance providers specialising in this class of insurance will also have their own list of extensions that they will negotiate with insurers. As an example you may refer to the example provided which is so provided as an example and these will vary depending upon the general insurance market at the time the CAR and EAR insurance is taken out by the insuring party.

In addition the parties need to consider if the CAR and EAR policy is to cover the respective party’s to the Contract for:

Additional cost of construction of un-built works in the event of

(A) Inflationary Costs

(B) Out of sequence working

(C) Defective design, materials and workmanship

(D) Extended defective condition exclusion

(E) Limited defective condition exclusion

(F) Design improvement exclusion

It is understood that various legal challenges are currently on-going as to the validity of these clauses and therefore whilst the description of coverage above may not reflect the current or future legal interpretation. As with all contractual documentation it is recommended that all parties seek professional advice in respect of these risks.

It should be noted here that if the Contractor arranges CAR and EAR cover it may restrict or even remove the ability of the Employer to purchase any consequential loss coverage.

Construction Insurances Explained – Public Liability Insurance


Malaysia Public Liability Insurance

Public Liability Insurance

Typical public liability insurance will provide indemnity in respect of liability at law for damages arising from accidental injury to third parties (not employees) or accidental damage to third-party property arising in connection with the project. It may also cover liability for damages arising out of any nuisance or trespass committed by the insured and any rights (such as a right of way) with which the insured may accidentally interfere in the course of the development. Other elements of cover normally provided include defence of claims costs, the use of plant on the site and legal defence costs in respect of prosecutions brought under the Health and Safety legislation.

Many insurance providers now exclude claims arising from sources they regard as particularly hazardous, such as terrorism, asbestos, gradual pollution, mould, e-commerce transactions and, potentially, financial loss where there has been no ‘injury or damage’ as defined in the policy. Insurers may restrict their liability for particular risks by imposing inner limits much smaller than the overall policy limit.

Public liability insurance coverage may be arranged on an annual basis with a specific limit being the maximum amount payable in the event of any one claim or series of claims arising from one occurrence. It is normal for this limit to apply in respect of any one claim but some limits do apply to all claims in the period of insurance.

There may be a limit on any one claim and then a separate aggregate limit. Sometimes there are elements of cover that insurers may be particularly concerned about, e.g. sudden and accidental pollution may be subject to lower limits of liability and/or separate aggregates.

Whatever type is issued, it is the insured party or parties that decide on the level of cover to be purchased dependent upon the risk exposure arising from the work being undertaken. When deciding upon the limits to be purchased it is best not to rely on any figure requested within a contract document, as this is normally the minimum amount required.

The policy will normally be subject to an excess that will be deducted from the total amount claimed and may apply only in respect of claims for property damage or in respect of all claims.

Every party on site with a potential liability to the public will require an insurance policy. Additional responsibilities for each party will also be set out in the contract. It is traditional and still common for the Contractor to arrange a cover on behalf of the Employer.

However, it has to be asked if this is in the best interests of everyone, whether the Employer who may find he has only nominal cover or a claimant who may find they are passed from one insurer to another if there are different policies in different names. One option is to effect a project policy arranged by the Employer.

The parties protected by the policy will vary according to the Employer’s requirements and the nature of the contract forms being adopted. The indemnity can apply to the Employer only or together with the Contractor, his subcontractors and tradesmen. In addition there may be freeholders, superior landlords, financiers plus professional consultants and suppliers (on site exposures only) to be added to the list of insured. The policy should set out the names of all insured and specify in which policy covers they have an insurable interest.

Public liability insurance is not a cheap insurance and if one party does arrange cover in two or more names the cost of this and the potential savings to the other names should to be reflected in tender prices.

It is important for the Employer to decide responsibilities for placing public liability insurance before contracts are signed, rather than just follow the provisions of the basic contract conditions.

Whoever is making the decision as to who must arrange the cover must consider all those who may need to be protected.


Malaysia Workmens Compensation Insurance

Workmen Compensation Insurance

Innovative and cost-effective solutions for your business

No matter what type of business your company is involved in or how much care your employees take in the workplace, accidents can still happen.

ACPG Insurers is a leading provider of financial protection against liability for workplace injuries.

Our international experience enables us to provide innovative and cost-effective solutions to our clients. Benefits for our clients include:

fully integrated approach to claims management ability to remain nimble and flexible to the emerging needs of customers online solutions that provide you with the tools to act faster

self-insurance services.

ACPG Insurers Workmen’s Compensation Insurance provides cover against all sums for which the Insured shall be liable to pay in compensation to any employee for personal injury sustained either by accident or disease arising out of and in the course of their employment under Common Law. Or under the following legislation (including all subsequent amendments to these enactments and ordinances):


Workmen’s Compensation Ordinance 1952

Workmen’s Compensation (Amendment) Ordinance 1956

Workmen’s Compensation (Amendment) Ordinance 1976

Modification of Laws (Workmen’s Compensation) Extension and Modification Ordinance 1981

Employers’ Liability

The Employers’ Liability Insurance policy provides cover for an employer against liability for the damages and claimant’s costs and expenses in respect of bodily injury or disease sustained by any person under a contract of service or apprenticeship.

Foreign Workers Compensation Scheme Insurance

The benefit of this cover is that it insures death and bodily injury as a result of work place accident or occupational disease arising out of and in the course of employment, inclusive of journey to and from work such as:


Permanent disablement

Permanent total disablement

Permanent partial disablement

Temporary total disablement

Medical expenses

Repatriation expenses

Personal accident

Malaysia Construction & Engineering Insurance

Essential cover against sudden or unforeseen losses

Engineering and construction projects often involve huge capital investments and therefore required specialised risk mitigation.

ACPG Insurers Construction & Engineering Insurance will help protect your investments against loss or damage to your engineering or construction projects. We have the specialist expertise to provide comprehensive financial protection against many areas of risks, including work in progress or material damage of your project and also liability from third-party claims resulting from engineering and construction works.

Our flexible approach allows policies to be tailored to your specific needs. Our competitive terms appeal to customers of all sizes, from owner builders to principals of major civil engineering projects.

ACPG Insurers provides cover for:

Contractors’ All Risks

Civil Engineering Completed Risks

Erection All Risks

Boiler and pressure vessel

Electronic equipment

Machinery breakdown

Machinery breakdown loss of profit

Storage tank

Special perils

Contractor All Risk Insurance in Malaysia (CAR)

AIG Malaysia Contractor All Risk Insurance

Allianz Malaysia Contractor All Risk Insurance

Ace Jerneh Malaysia Contractor All Risk Insurance

AXA Malaysia Contractor All Risk Insurance

AMGeneral Malaysia Contractor All Risk Insurance

Berjaya Sampo Malaysia Contractor All Risk Insurance

CHUBB Malaysia Contractor All Risk Insurance

Danajamin Malaysia Contractor All Risk Insurance

Etiqa Malaysia Contractor All Risk Insurance

Kurnia Malaysia Contractor All Risk Insurance

Liberty Malaysia Contractor All Risk Insurance

Lonpac Malaysia Contractor All Risk Insurance

MSIG Malaysia Contractor All Risk Insurance

MPI Malaysia Contractor All Risk Insurance

P&O Malaysia Contractor All Risk Insurance

OAC Malaysia Contractor All Risk Insurance

RHB Malaysia Contractor All Risk Insurance

QBE Malaysia Contractor All Risk Insurance

Takaful Malaysia Contractor All Risk Insurance

Tokio Marine Malaysia Contractor All Risk Insurance

The Pacific Malaysia Contractor All Risk Insurance

Tune Malaysia Contractor All Risk Insurance

Zurich Malaysia Contractor All Risk Insurance

Erection All Risk Insurance in Malaysia (EAR)

AIG Malaysia Erection All Risk Insurance

Allianz Malaysia Erection All Risk Insurance

Ace Jerneh Malaysia Erection All Risk Insurance

AXA Malaysia Erection All Risk Insurance

AMGeneral Malaysia Erection All Risk Insurance

Berjaya Sampo Malaysia Erection All Risk Insurance

CHUBB Malaysia Erection All Risk Insurance

Danajamin Malaysia Erection All Risk Insurance

Etiqa Malaysia Erection All Risk Insurance

Kurnia Malaysia Erection All Risk Insurance

Liberty Malaysia Erection All Risk Insurance

Lonpac Malaysia Erection All Risk Insurance

MSIG Malaysia Erection All Risk Insurance

MPI Malaysia Erection All Risk Insurance

P&O Malaysia Erection All Risk Insurance

OAC Malaysia Erection All Risk Insurance

RHB Malaysia Erection All Risk Insurance

QBE Malaysia Erection All Risk Insurance

Takaful Malaysia Erection All Risk Insurance

Tokio Marine Malaysia Erection All Risk Insurance

The Pacific Malaysia Erection All Risk Insurance

Tune Malaysia Erection All Risk Insurance

Zurich Malaysia Erection All Risk Insurance

Public Liability Insurance in Malaysia (PL)

AIG Malaysia Public liability Insurance

Allianz Malaysia Public liability Insurance

Ace Jerneh Malaysia Public liability Insurance

AXA Malaysia Public liability Insurance

AMGeneral Malaysia Public liability Insurance

Berjaya Sampo Malaysia Public liability Insurance

CHUBB Malaysia Public liability Insurance

Danajamin Malaysia Public liability Insurance

Etiqa Malaysia Public liability Insurance

Kurnia Malaysia Public liability Insurance

Liberty Malaysia Public liability Insurance

Lonpac Malaysia Public liability Insurance

MSIG Malaysia Public liability Insurance

MPI Malaysia Public liability Insurance

P&O Malaysia Public liability Insurance

OAC Malaysia Public liability Insurance

RHB Malaysia Public liability Insurance

QBE Malaysia Public liability Insurance

Takaful Malaysia Public liability Insurance

Tokio Marine Malaysia Public liability Insurance

The Pacific Malaysia Public liability Insurance

Tune Malaysia Public liability Insurance

Zurich Malaysia Public liability Insurance

Workmens Compensation Insurance in Malaysia (WC)

AIG Malaysia Workmens Compensation Insurance

Allianz Malaysia Workmens Compensation Insurance

Ace Jerneh Malaysia Workmens Compensation Insurance

AXA Malaysia Workmens Compensation Insurance

AMGeneral Malaysia Workmens Compensation Insurance

Berjaya Sampo Malaysia Workmens Compensation Insurance

CHUBB Malaysia Workmens Compensation Insurance

Danajamin Malaysia Workmens Compensation Insurance

Etiqa Malaysia Workmens Compensation Insurance

Kurnia Malaysia Workmens Compensation Insurance

Liberty Malaysia Workmens Compensation Insurance

Lonpac Malaysia Workmens Compensation Insurance

MSIG Malaysia Workmens Compensation Insurance

MPI Malaysia Workmens Compensation Insurance

P&O Malaysia Workmens Compensation Insurance

OAC Malaysia Workmens Compensation Insurance

RHB Malaysia Workmens Compensation Insurance

QBE Malaysia Workmens Compensation Insurance

Takaful Malaysia Workmens Compensation Insurance

Tokio Marine Malaysia Workmens Compensation Insurance

The Pacific Malaysia Workmens Compensation Insurance

Tune Malaysia Workmens Compensation Insurance

Zurich Malaysia Workmens Compensation Insurance

Construction & Engineering Insurance in Malaysia

AIG Malaysia Construction & Engineering Insurance

Allianz Malaysia Construction & Engineering Insurance

Ace Jerneh Malaysia Construction & Engineering Insurance

AXA Malaysia Construction & Engineering Insurance

AMGeneral Malaysia Construction & Engineering Insurance

Berjaya Sampo Malaysia Construction & Engineering Insurance

CHUBB Malaysia Construction & Engineering Insurance

Danajamin Malaysia Construction & Engineering Insurance

Etiqa Malaysia Construction & Engineering Insurance

Kurnia Malaysia Construction & Engineering Insurance

Liberty Malaysia Construction & Engineering Insurance

Lonpac Malaysia Construction & Engineering Insurance

MSIG Malaysia Construction & Engineering Insurance

MPI Malaysia Construction & Engineering Insurance

P&O Malaysia Construction & Engineering Insurance

OAC Malaysia Construction & Engineering Insurance

RHB Malaysia Construction & Engineering Insurance

QBE Malaysia Construction & Engineering Insurance

Takaful Malaysia Construction & Engineering Insurance

Tokio Marine Malaysia Construction & Engineering Insurance

The Pacific Malaysia Construction & Engineering Insurance

Tune Malaysia Construction & Engineering Insurance

Zurich Malaysia Construction & Engineering Insurance

Construction Insurance in Malaysia

AIG Malaysia Construction Insurance

Allianz Malaysia Construction Insurance

Ace Jerneh Malaysia Construction Insurance

AXA Malaysia Construction Insurance

AMGeneral Malaysia Construction Insurance

Berjaya Sampo Malaysia Construction Insurance

CHUBB Malaysia Construction Insurance

Danajamin Malaysia Construction Insurance

Etiqa Malaysia Construction Insurance

Kurnia Malaysia Construction Insurance

Liberty Malaysia Construction Insurance

Lonpac Malaysia Construction Insurance

MSIG Malaysia Construction Insurance

MPI Malaysia Construction Insurance

P&O Malaysia Construction Insurance

OAC Malaysia Construction Insurance

RHB Malaysia Construction Insurance

QBE Malaysia Construction Insurance

Takaful Malaysia Construction Insurance

Tokio Marine Malaysia Construction Insurance

The Pacific Malaysia Construction Insurance

Tune Malaysia Construction Insurance

Zurich Malaysia Construction Insurance

Foreign Worker Insurance in Malaysia

AIG Malaysia Foreign worker Insurance

Allianz Malaysia Foreign worker Insurance

Ace Jerneh Malaysia Foreign worker Insurance

AXA Malaysia Foreign worker Insurance

AMGeneral Malaysia Foreign worker Insurance

Berjaya Sampo Malaysia Foreign worker Insurance

CHUBB Malaysia Foreign worker Insurance

Danajamin Malaysia Foreign worker Insurance

Etiqa Malaysia Foreign worker Insurance

Kurnia Malaysia Foreign worker Insurance

Liberty Malaysia Foreign worker Insurance

Lonpac Malaysia Foreign worker Insurance

MSIG Malaysia Foreign worker Insurance

MPI Malaysia Foreign worker Insurance

P&O Malaysia Foreign worker Insurance

OAC Malaysia Foreign worker Insurance

RHB Malaysia Foreign worker Insurance

QBE Malaysia Foreign worker Insurance

Takaful Malaysia Foreign worker Insurance

Tokio Marine Malaysia Foreign worker Insurance

The Pacific Malaysia Foreign worker Insurance

Tune Malaysia Foreign worker Insurance

Zurich Malaysia Foreign worker Insurance

Malaysia General Insurance Company Listing

AIG Malaysia Insurance Berhad

AXA Affin General Insurance Berhad

Allianz General Insurance Company (Malaysia) Berhad

AmGeneral Insurance Berhad

Berjaya Sompo Insurance Berhad

Chubb Insurance Malaysia Berhad

Danajamin Nasional Berhad

Liberty Insurance Berhad

Lonpac Insurance Berhad

MPI Generali Insurans Berhad

MSIG Insurance (Malaysia) Bhd

Overseas Assurance Corporation (Malaysia) Berhad

Pacific & Orient Insurance Co. Berhad

Pacific Insurance Berhad, The

Progressive Insurance Berhad

QBE Insurance (Malaysia) Berhad

RHB Insurance Berhad

Tokio Marine Insurans (Malaysia) Berhad

Tune Insurance Malaysia Berhad

Malaysia Insurance Corporate Agency

ACPG Management Sdn Bhd (Insurance Biz since Year 1989)

Head Office

158-3-7, Blok 158, Kompleks Maluri,

Jalan Jejaka, Taman Maluri, Cheras,

55100 Kuala Lumpur, Malaysia.

+603-92863323, +6011-12239838