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The policy covers the insured items from any unforeseen and sudden physical loss or damage from any cause, other than those specifically excluded.

Section I – Material Damage

The insurers will indemnify the insured in respect of such loss or damage as hereinafter provided by payment in cash, replacement or repair.

Section II – Material Damage

This section covers the plant and machinery used in the construction site against any unforeseen and sudden physical loss or damage.

Section III – Material Damage

The Insurers will indemnify the Insured up to the amount specified in the schedule against such sums which the insured shall become legally liable to pay as damages consequent upon:

  1. Accidental bodily injury to or illness of third parties (whether fatal or not)
  2. Accidental loss of or damage to property belonging to third parties Occurring in direct connection with the construction or erection of the items insured under Section I and happening on or in the immediate vicinity of the site during the Period of Cover.

The insurers will in addition indemnify the Insured against:

  1. All costs and expenses of litigation recovered by any claimant from the Insured.
  2. All costs and expenses incurred with the written consent of the insurers, provided that the liability of the insurers under this section shall not exceed the limits of indemnity in the policy.

Scope of Cover

The CAR policy covers construction of the following;

  1. Residential buildings
  2. Multistorey and hall buildings.
  3. Industrial buildings
  4. Earthworks, roads, airports, railways, dams, harbour, land reclamation, hydropower projects, hydraulics projects, Special structures and bridges.
  5. Sewerage and water treatment plants
  6. Harbours/Wet risks


Material Damage

  • Riot, strike and civil commotion
  • Cessation of work whether Total or partial
  • Consequential loss
  • Faulty design
  • Vehicles licensed for general road use (under contractors plant), waterborne vessels or aircraft. Deductible
  • Extra charges for overtime ……… (expediting expenses)
  • Electrical or mechanical breakdown, failure, breakage or derangement.

Third Party Liability

  • Deductible
  • Damage to any property or land caused by vibration, removal or wakening of support
  • Injury or illness of employees or workmen of the contractors (s) or the principal (s) or any other firm connected to the project, or members of their families.
  • Liability arising out of agreement.
  • Watchman warranty

For assistance, contact our Customer Care teams on 0711-030140 and/or 0711-030105, email customercare@directline.co.ke or visit us at our various branches.

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