Contractor’s All Risk Insurance (CARI) is an important type of protection for construction and engineering projects in the Philippines. It can provide coverage against certain losses or damage that may occur during the construction period, subject to the policy’s terms, conditions, limits, and exclusions.
For contractors, project owners, and other parties involved in construction projects, one of the first questions is often: What are the CARI requirements in the Philippines?
The requirements can vary depending on the project, its contract, the insurer, and the type and size of construction work involved. However, there are several documents and project details that are commonly requested when applying for CARI or requesting a quotation.
What Is CARI?
Contractor’s All Risk Insurance, commonly known as CARI, is designed to provide protection for construction projects against covered risks during the construction period.
Depending on the policy, CARI may provide coverage for physical loss or damage involving the construction works, materials, equipment, and other insured property. It may also include third-party liability coverage, subject to the policy terms, conditions, limits, and exclusions.
CARI is commonly associated with projects such as building construction, infrastructure work, renovations, and other engineering or construction activities.
If you are still learning about CARI, read our Contractor’s All Risk Insurance guide for a more detailed explanation of how CARI works and what it can cover.
What Are the Common CARI Requirements?
There is no single checklist that applies to every construction project. The documents required can depend on the project’s scope, contract value, duration, location, construction method, and other risk factors.
However, applicants may commonly be asked to provide information such as:
- Project details
- Contract or project value
- Project location
- Construction period
- Scope of work
- Bill of Quantities (BOQ)
- Project contract or draft contract
- Notice to Proceed (NTP), when available
- Construction plans or specifications, when applicable
- Details of the contractor
- Details of the project owner
- Information about subcontractors, when applicable
- Other technical or project documents requested by the insurer
Providing complete and accurate information can help the insurer properly evaluate the project and determine the appropriate coverage and premium.
1. Project Details
One of the most important parts of a CARI application is basic information about the construction project.
This may include:
- Project name
- Project location
- Type of construction
- Description of the work
- Project owner
- Main contractor
- Subcontractors, if applicable
- Expected start date
- Expected completion date
These details help the insurer understand the nature and duration of the risk being insured.
2. Contract or Project Value
The value of the construction project is another important consideration when arranging CARI.
The insurer may request the contract price or estimated project value, depending on the project and policy structure.
Supporting documents may be requested to verify the amount, particularly for larger or more complex projects.
It is important to provide accurate figures because the amount of insurance should appropriately reflect the project and the property or works being insured.
3. Bill of Quantities (BOQ)
A Bill of Quantities (BOQ) may be requested for construction projects because it provides useful information about the work being performed and the costs associated with different parts of the project.
The BOQ can help provide a clearer picture of:
- Construction work
- Materials
- Quantities
- Labor
- Equipment
- Project costs
For projects where a BOQ is available, providing it can help the insurance provider better understand the project’s scope and requirements.
4. Notice to Proceed or Similar Project Documents
A Notice to Proceed (NTP) may also be requested, particularly for projects where construction has already been authorized or is about to begin.
Other project documents may also be requested depending on the circumstances.
If the NTP is not yet available, the insurer may ask for other documentation that establishes the project’s status and expected construction period.
5. Project Plans and Specifications
For certain construction projects, technical documents such as plans, specifications, engineering details, or other project information may be required.
These documents can be particularly relevant when evaluating projects with more complex construction activities or specialized engineering work.
The exact documents required will depend on the nature of the project and the insurer’s underwriting requirements.
6. Construction Period
The construction period is an important consideration when arranging CARI.
Applicants should provide the expected:
Start date → Construction period → Completion date
The policy period should correspond appropriately with the project and the coverage being requested.
If there are delays or changes to the construction schedule, the insurance provider should be informed because an extension of the period of insurance may need to be arranged, subject to the policy terms.
7. Information About the Contractor
Information about the contractor may also be requested as part of the underwriting process.
This may include:
- Company name
- Business information
- Relevant construction experience
- Type of work performed
- Previous or ongoing projects
- Other information relevant to the project
For larger or specialized projects, additional information may be requested to help assess the construction risk.
What Does CARI Cover?
CARI is designed to protect against covered physical loss or damage associated with the insured construction project, subject to the policy’s terms, conditions, limits, and exclusions.
Depending on the policy, coverage may include areas such as:
Contract Works
This generally refers to the construction works being performed as part of the insured project.
Construction Materials
Certain materials intended for incorporation into the project may be covered, depending on the policy.
Temporary Works
Temporary structures or works associated with the construction project may be covered when included within the policy terms.
Construction Equipment
Certain construction equipment may be covered depending on the policy and how the equipment is declared or included.
Third-Party Liability
CARI may also include third-party liability coverage for certain claims arising from the construction project, subject to the applicable terms and limits.
It is important to remember that CARI coverage is not unlimited. Specific exclusions, deductibles, conditions, limits, and warranties may apply.
Are CARI Requirements the Same for Every Project?
No.
This is an important point for contractors and project owners.
A small building project will not necessarily have the same requirements as a large infrastructure or engineering project.
Requirements can vary depending on factors such as:
- Project size
- Contract value
- Location
- Type of construction
- Construction methods
- Project duration
- Equipment being used
- Previous project experience
- Contractual insurance requirements
- Third-party liability exposure
Because of these differences, the best approach is to provide the available project information so the insurance provider can determine what information and documentation are needed.
Why Should You Prepare Your Documents Before Applying?
Having your project documents ready can make the application process more efficient.
For example, having your BOQ, project contract, NTP, project details, and other relevant information available can help the insurance provider understand the project more quickly.
It can also reduce unnecessary back-and-forth when additional information is needed to evaluate the risk.
Before requesting a CARI quotation, it is a good idea to prepare:
Project details + Contract value + Project duration + Scope of work + BOQ + Available project documents
The exact requirements may still vary depending on the project and underwriting assessment.
What If I Don’t Have All the CARI Documents Yet?
Not every construction project will have every document available at the same stage.
For example, a project may still be preparing its final contract or may not yet have a Notice to Proceed.
If you do not have all the documents, you can still ask an insurance provider what information is needed to begin evaluating your project.
Instead of assuming that you cannot apply, provide the documents and project information currently available and ask what additional requirements may be needed.
How to Request a CARI Quotation
When requesting a CARI quotation, provide as much relevant project information as possible.
A typical inquiry should include information such as:
- Project name
- Project location
- Type and scope of construction
- Contract or project value
- Construction period
- Contractor information
- Project owner information
- Available BOQ
- Contract or draft contract
- NTP, if available
- Other relevant project documents
The insurance provider can then review the information and advise on the next steps, additional requirements, and applicable coverage options.
CARI Requirements: Frequently Asked Questions
Is CARI mandatory for all construction projects in the Philippines?
Not necessarily. Whether CARI is required can depend on the project’s contract, owner, financing arrangements, or other requirements. Some projects may specifically require contractors to obtain CARI before work begins.
What documents are usually needed for CARI?
Commonly requested documents may include project details, contract or project value, BOQ, project contract or draft contract, NTP when available, construction plans or specifications, and other information needed to assess the project.
Can I apply for CARI without a Notice to Proceed?
The availability of an NTP does not necessarily determine whether you can start discussing CARI. Requirements can vary depending on the project and its stage. Contact an insurance provider to determine what available documents can be used for the initial assessment.
Does CARI cover third-party liability?
CARI may include third-party liability coverage, depending on the policy structure and applicable limits and conditions.
How much does CARI cost?
The premium depends on factors such as the project value, construction type, duration, location, coverage requirements, and assessed risk. There is no single fixed price for every CARI policy.
What happens if the construction project is delayed?
If the project extends beyond the original period of insurance, an extension may need to be arranged. Contact your insurance provider as soon as possible because any extension will be subject to the policy terms and insurer approval.
Final Checklist: CARI Requirements
Before requesting a CARI quotation, prepare the following information where available:
☐ Project name and location
☐ Contractor and project owner details
☐ Scope of construction work
☐ Contract or project value
☐ Construction start and completion dates
☐ Bill of Quantities (BOQ)
☐ Contract or draft contract
☐ Notice to Proceed (NTP), if available
☐ Construction plans or specifications, if applicable
☐ Other project documents requested by the insurer
Having these details ready can help provide a clearer picture of the project and make the quotation process more efficient.
Get Assistance With Your CARI Requirements
Every construction project is different, so the documents and information needed for CARI may vary.
If you are preparing insurance for a construction project, PowerWealth can help you understand the information needed for your CARI inquiry and guide you through the quotation process.
Contact PowerWealth Insurance Services to discuss your Contractor’s All Risk Insurance requirements.
