Case Study: The Importance of Construction Insurance (CAR Insurance + VRWS Clause)

Last updated: 15 Oct 2025

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Construction Insurance (CAR Insurance) Coverage:

1. Material Damage Section
Provides coverage for damages to construction materials and equipment during the construction process caused by unexpected events such as fire, flooding, accidents, or collapse.

2. Third Party Liability
Protects against damages to external property such as roads and adjacent buildings, and covers injury or death to third parties caused by the construction activities.

Special Clause: VRWS Clause (Vibration, Removal, Weakening of Support)
Construction projects that involve excavation or underground work often require the addition of special clauses in the insurance policy. The VRWS Clause is one such critical clause that covers:

Vibration : Damage caused by vibrations from activities such as pile driving or drilling.
Removal : Damage caused by the removal of existing structures that might impact neighboring properties.
Weakening of Support : Damage caused by activities like tunneling, which can lead to subsidence affecting nearby buildings or roads.

Having the VRWS Clause in the insurance policy is essential as it marks the line between adequate protection and the potential risk that contractors or project owners may need to bear on their own.

Why You Need a Specialized Insurance Broker
Choosing the right coverage and insurance limits for construction projects can be complex, as each project carries different risks. Working with a specialist broker like RM Consultant Co., Ltd. helps to:

Analyze project risks comprehensively.
Negotiate with insurers to add specific clauses tailored to the projects needs.
Structure the policy to ensure both technical and legal protection.

Conclusion
Every construction project, especially those involving underground structures or areas within dense urban zones, should carefully consider construction insurance with a VRWS Clause. This ensures that in the event of an unexpected incident—such as a road collapse in front of Vajira Hospital the contractor and project owner are not burdened with enormous costs alone.

RM Consultant Co., Ltd. is ready to provide consulting services and design the appropriate coverage for every construction project because we believe:

"Effective risk management starts with the right insurance planning."