Construction Insurance Basics for Nepali Homeowners and Contractors

What Contractors All Risk (CAR) insurance covers and why it matters for mid-to-large residential and commercial projects.

What CAR insurance covers

Contractors All Risk policies typically cover material damage, third-party liability and some natural catastrophe risks during construction.

When it's worth the cost

For projects above a few million rupees, CAR insurance premiums are small relative to the risk of an uninsured structural loss.

Third-party liability protection

Insurance protects against claims if construction activity damages a neighboring property or injures a passerby.

Check policy exclusions

Confirm whether earthquake damage is covered as standard or requires a separate rider in the Nepali insurance market.

Use this in Build Mart Nepal

Turn the guidance into action by creating a project, loading a BOQ, matching local providers, issuing quotations and storing approvals in the Build Mart Nepal construction operating system.

Quick implementation checklist

• Define the required outcome and acceptance evidence.
• Assign an owner and target date.
• Record quotations, approvals and changes.
• Inspect completed work and retain handover records.