A self-employed South African contractor typically needs five layers of cover: Contractors All Risk (CAR) for the works themselves, public liability for harm to other people and their property, a SASRIA extension for riot and unrest damage, cover for your plant, tools and bakkie, and COIDA registration for anyone who works for you. COIDA replaces employers' liability insurance in South Africa: you do not buy private cover for worker injuries on top of it.
1. Contractors All Risk (CAR)
CAR is the foundation policy for anyone doing construction work. It covers sudden, unforeseen physical damage to the contract works (the structure being built), materials stored on or off site, surrounding property you accidentally damage, and it usually includes the public liability section too.
You can buy it per project (from award to completion) or as an annual policy covering all your projects up to a maximum contract value for the year. An annual policy is usually better value for a busy contractor.
Two things catch people out. First, the sum insured must equal the full contract value, including materials supplied by the client. Under-insure by even 20% and the average clause kicks in: the insurer reduces every claim proportionally. Second, the exclusions. Standard CAR does not cover defective workmanship or design, professional negligence (that needs professional indemnity, covered in Professional Indemnity for Design-and-Build), plant and tools unless specifically added, road-legal vehicles, consequential loss, or riot and strike damage. That last gap is what SASRIA exists for.
2. Public liability
Public liability (PL) is usually a section within the CAR policy, not a separate purchase. It pays when a member of the public is injured on your site or you damage a neighbour's property during the works. Limits of R1 million to R10 million are common, and some government and major private contracts specify a minimum limit in the tender documents, so read the tender before you quote.
One gap to discuss with your broker: if you do general maintenance or odd jobs between formal contracts, there may be no underlying contract for the CAR policy to attach to. A stand-alone commercial PL policy covers that in-between work.
3. SASRIA: the layer no other country has
SASRIA (South African Special Risks Insurance Association) is a state-owned, not-for-profit insurer and the only non-life insurer in South Africa covering civil commotion, public disorder, strikes, riots and terrorism. Standard insurers everywhere exclude these risks; South Africa carved them into a statutory vehicle formed after the 1976 Soweto uprisings.
It matters because it pays when nothing else will. During the July 2021 unrest, SASRIA paid out more than R24 billion in claims, settling 80% of all lodged claims by July 2022. If your site materials, plant or completed works are damaged in a service-delivery protest, road blockade or strike, only SASRIA-endorsed cover pays. Standard CAR pays nothing for those causes.
Three practical points. SASRIA is bought as an extension to an existing underlying policy (CAR, plant or motor); you cannot buy it stand-alone for most purposes. Premiums are a small percentage of the underlying premium and are set nationally, not negotiated. And it does not cover ordinary theft, natural disasters, war, pandemics, consequential loss or liability. Details and policy wordings are on SASRIA's site.
4. Plant, tools and the bakkie
Plant All Risk (PAR) covers owned or hired-in plant (mixers, compactors, scaffolding, TLBs) against accidental damage, theft, fire, overturning and transit. It is separate from CAR. If equipment is financed, the bank will almost always require comprehensive PAR with its interest noted before releasing funds.
Tools and small equipment can be added to CAR or PAR or covered under a commercial all-risk section. Check the wording on tools left in the bakkie overnight: overnight-in-vehicle exclusions are common, and they are one of the main reasons tool claims fail (more in Site and Bakkie Security Planning).
The bakkie itself needs a commercial-use motor policy. Carrying materials or workers on a private vehicle policy is a common cause of claim rejection, and if the bakkie is financed, comprehensive cover is mandatory. Brokers quote premiums on declared value, tracking, where the vehicle sleeps, your excess and your claims history; there is no standard tariff, so treat any premium figure you see online as a talking point, not a fact.
5. COIDA: worker cover you do not double-insure
COIDA (the Compensation for Occupational Injuries and Diseases Act 130 of 1993) is a statutory no-fault scheme, not private insurance. Every employer, including a self-employed contractor with even one part-time helper, must register with the Compensation Fund and pay an annual assessment based on workers' earnings (capped at R668,000 per worker for 2026/27) and the risk class of the work.
It pays medical treatment, temporary disability at 75% of earnings for up to 12 months (extendable to 24), permanent disability benefits, and death benefits to dependants. Once you are registered, an injured employee generally cannot sue you for the injury: the statutory benefit is the exclusive remedy. That is the no-double-insure principle. You do not buy employers' liability insurance on top of COIDA. You still need public liability for visitors and third parties who are not your employees.
Register at the Department of Employment and Labour, submit your Return of Earnings each year in the 1 April to 30 June window, and get a Letter of Good Standing: many clients and main contractors require it before you set foot on site. Failing to register is a criminal offence, and an unregistered employer can be made to pay the compensation personally.
A worked example
Sipho runs a two-person plastering and bricklaying business in Gauteng and wins a R350,000 contract for a garage and boundary wall. His stack: an annual CAR policy (R1.5 million maximum contract value) including R2 million public liability; a SASRIA extension on the CAR; PAR for the mixer, scaffolding and tools; commercial comprehensive cover on the bakkie with the finance house's interest noted; and COIDA registration for his helper, with the Letter of Good Standing shown to the client before starting. No separate employers' liability policy: COIDA covers worker injury.
Common mistakes
- Insuring below the full contract value. The average clause cuts every claim, not just the big one.
- Skipping SASRIA to save a small premium. Standard CAR pays nothing for riot or strike damage.
- Running the bakkie on a private policy. Commercial use on a personal policy is a standard rejection ground.
- Buying employers' liability cover a broker did not need to sell you. COIDA already covers worker injury.
- No Letter of Good Standing. Main contractors will turn you away at the gate.
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