Contractors All Risks (CAR) This policy provides cover for contract works undertaken by contractor against any unforeseen physical loss or damage. The policy covers the total contract value including cost of materials and equipment and the policy can be extended to cover against legal liability to third parties as well as the contractor’s plant and machinery used in the project. 2. ERECTION ALL RISKS (EAR) Provides cover for erection works undertaken by the contractor against any unforeseen physical loss or damage. The policy extends cover against legal liability to third parties arising out of and in the course of the erection works. 3. MACHINERY BREAKDOWN Covers against sudden and unforeseen accidental physical damage to insured’s plant, machinery and equipment while at work or at rest. The policy extends to cover against loss or damage due to faulty operation, adjustment, casting, vibration, entry of foreign objects, loosening of parts, self-heating and centrifugal force.