Contractors All Risk Insurance in Cyprus
One policy covering your works and your third-party liability, from site set-up to handover.
At DigiCare Insurance, we place Contractors All Risk (CAR) cover for builds across Cyprus. Your construction contract, and most public-works tenders, will require it before you break ground.
Why DigiCare
Why contractors choose DigiCare
Compare multiple insurers
We're an independent broker with 47 years in the Cyprus market. We compare CAR quotes from several licensed insurers, so you don't get stuck with one company's rate.
Named-broker claims handling
When something goes wrong on site, you call us, not a call centre. We manage the claim with the insurer from first notice to final payment.
Cover built around your build
Every project is different. We match the limits, extensions, and excess to your contract, your site, and the parties you need to name.
Support in your language
Cyprus runs on international contractors. We work in English, Russian, and Greek, so every document and every call is clear.
What is Contractors All Risk insurance?
Contractors All Risk insurance is a single all-risks policy that protects a construction project in two ways: it pays for physical loss or damage to the works, and it covers your legal liability if the works injure someone or damage their property. Cover runs from the day you set up on site to the day you hand the project over.
You'll also see it called Construction All Risks, builders risk insurance, or course-of-construction (COC) cover. These all describe the same product.
See all our business insurance for Cyprus companies →Who needs CAR insurance in Cyprus?
If you're building, you need it. A CAR policy is usually arranged in joint names, so one policy protects everyone with a financial interest in the project. That avoids gaps and disputes after a loss.
Main contractor
The party running the build carries the bulk of the risk and is almost always the lead insured.
Subcontractors
Name them on the policy and a loss they cause is covered, with no argument over whose insurance pays.
Project owner / employer
Developers and owners can require contractors to hold CAR, and can be named to protect their own stake in the works.
Engineer / architect / consultants
The professionals on site can be named for their interest in the project, though design errors sit under professional indemnity.
What does Contractors All Risk insurance cover?
A CAR policy has two parts. Section A pays for physical loss or damage to the works and the property on site. Section B covers your liability to third parties during the build. Here's what sits in each.
Section A: Material damage
The permanent and temporary works
Contractor's plant, machinery, and equipment
Hired-in plant and equipment
Materials on site and in transit
Temporary structures and scaffolding
Existing and surrounding property
Insured perils typically include: Fire, explosion, earthquake, flood, storm, landslide and subsidence, collapse, theft and burglary.
Section B: Third-party liability
Covers bodily injury to third parties and damage to their property arising from the construction works. This is the liability half of the cover. For exposures beyond the site, you can add a standalone policy.
Read about standalone public liability cover →Cover runs from commencement of the works to handover.
Extensions and what CAR does not cover
Extensions worth asking for
Debris removal after an insured loss
Professional fees: valuations, plans, specifications, tenders, and supervision during reinstatement
Maintenance / defects period, typically around 6 to 12 months after handover
Damage to surrounding and underground services
Expediting expenses such as extra customs duty or air freight
Standard exclusions
Defective design and professional negligence
Defective workmanship (typically excluded)
Wear, tear, and gradual deterioration
Consequential or economic loss
War and related perils
Design and professional mistakes aren't covered by CAR. You insure those under professional indemnity insurance, which we can arrange alongside your CAR policy.
HOW IT WORKS
When does cover start and how do claims work?
Cover starts when work begins, or when materials are first unloaded on site, and ends at handover or policy expiry, whichever comes first. If the project overruns, tell us early so we can extend it.
If you need to claim
Notify us promptly
Call your broker or the insurer as soon as the loss happens. Early notice protects the claim.
Document the loss
Photograph the damage, keep records, and note what happened and when.
Secure the site
Prevent further damage and make the area safe. Keep receipts for any emergency work.
Submit the claim
We submit and manage the claim with the insurer through to settlement.
Declare the correct sum insured, including any materials the project owner supplies. Under-declaring can reduce what the insurer pays after a loss.
Is CAR insurance mandatory in Cyprus?
Contractors All Risk insurance is not compulsory under Cyprus statute. Your construction contract is what requires it. Domestic projects built on CyJCCT (MEDSK) and ETEK standard forms, and larger or public and international projects under FIDIC, routinely require the contractor to hold CAR plus public liability. Public-works tenders ask for it too.
The one cover Cyprus law does require
There is one insurance you must hold before any worker sets foot on site: Employers' Liability, under Law 174(I)/1989. The legal minimum is €160,000 per employee, with at least €3,415,000 per event and €5,125,000 per insurance period.
Most Cyprus builds need a small stack of policies. CAR sits alongside compulsory Employers' Liability Insurance, Public Liability Insurance, Professional Indemnity Insurance, our Business Insurance hub.
Sources: Law 174(I)/1989 (CyLaw), Cyprus Dept. of Labour Inspection, FIDIC, ETEK.
How much does Contractors All Risk insurance cost in Cyprus?
I'll be straight with you: there's no flat market rate. CAR is rated per project, usually as a percentage of the contract or works value. A small renovation and a multi-storey block sit at very different premiums, so the only honest number is the one on your own quote.
What moves your premium
Contract or works value
Project type and complexity
Project duration
Site location
Coverage limits and excess
Extensions you choose
Your experience and claims history
We don't publish a fixed CAR price because no honest broker can. We compare insurers and bring you the best rate for your project.
Standard cover vs optional extensions
Here's what comes as standard on a typical CAR policy, and what you can add. Use it to decide what your build actually needs before you ask for a quote.
| Included as standard | Optional extensions |
|---|---|
| Material damage to the works | Professional fees on reinstatement |
| Third-party liability | Maintenance / defects period (6-12 months) |
| Contractor's plant and equipment | Hired-in plant and equipment |
| Materials on site and in transit | Surrounding and underground services |
| Temporary works and named perils | Expediting expenses (customs, air freight) |
| Debris removal after a loss | Extended period if the project overruns |
FAQ
Frequently asked questions
Building in Cyprus? Get covered before work starts.
A single uninsured loss on site can wipe out a project's margin. It takes a few minutes to tell us about your build, and we'll compare insurers to find your best CAR rate. Cover the works, your liability, and the parties who matter.
Licensed Cyprus insurance broker | 47 years | 5.0 Google Reviews