Construction
Contractor All-Risk (CAR) Insurance Premium
Paying the annual Contractor All-Risk insurance premium for a construction project.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Prepaid Project Insurance | Asset (+) | 18,000.00 | - |
| Cash in Bank | Asset (-) | - | 18,000.00 |
💡 Accountant's Note
CAR insurance is mandatory on most construction contracts. The premium is prepaid and amortized monthly over the project duration as it is directly attributable to the contract cost.
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