Contractors are often required to hold several different policies at once, and it's easy to assume one covers what's actually the job of another. Here's what each one is actually for, and how to work out what a specific project needs.
Contractors' All Risks (CAR)
Covers physical loss or damage to the works, materials and site equipment during construction. It protects the project itself — not injuries to people or damage to property outside the site, which fall under separate covers below.
Public Liability
Covers the contractor's legal liability for third-party injury or property damage arising from the project — for example, if construction activity damages a neighbouring property or injures a member of the public. This is distinct from CAR's third-party liability section, if the CAR policy includes one, and the two shouldn't be assumed interchangeable without checking.
Workmen's Compensation
Covers statutory and, where arranged, voluntary compensation for the contractor's own workforce injured in the course of work. This is about the contractor's employees specifically — not the general public, and not the works themselves.
Side-by-side: what each one actually responds to
| Situation | Likely applicable cover |
|---|---|
| A wall collapses and damages the partially-built structure itself | Contractors' All Risks |
| Falling debris damages a parked car belonging to a passer-by | Public Liability |
| A site worker is injured operating machinery | Workmen's Compensation |
| Site equipment is stolen overnight | Contractors' All Risks (subject to policy terms) |
Working out what your project actually needs
Start with what the main contract or tender documents explicitly require — most construction contracts in Malaysia specify minimum covers and limits for each of these. From there, the practical question is whether the limits specified are actually adequate for the site conditions, workforce size, and surrounding property exposure — not just the contractual minimum.
Not sure which covers your project actually needs?
Send us your contract value, project type and requirements
We'll help you work out which of these covers apply, and at what limits, based on what your project and contract actually require.
Request a Project Coverage ReviewFrequently asked questions
Can one policy cover all three?
Some insurers offer combined or package policies for contractors, but the scope of each section still needs checking individually — a combined policy doesn't automatically mean broader cover.
Is Workmen's Compensation insurance mandatory in Malaysia?
Employer obligations toward injured employees are set out in Malaysian law, and arrangements to meet those obligations vary by workforce composition. It's worth confirming current requirements directly rather than assuming past arrangements still apply.