In principle, this type of insurance policy covers the contractors scope of work, any physical damage to material, and possible third party liabilities arising out of the construction activities.
You may ask why a CAR policy contains any liability coverage. The answer is in two parts. First, it is required to comply with the laws and contract conditions. And second, it is clearly advantageous for the employer and main contractor to be sure that none of the participants in the joint venture are without insurance protection against claims from any Third Party visiting the site. The smooth working and cooperation on the work site, would be greatly compromised if one of the concerned contractors had to defend himself against a Third Party Lawsuit, without the financial resources and legal expertise of an insurer like Asia Insurance (Cambodia).