Specialty Construction
Construction Risk has a blueprint
Construction Insurance needs an expert Risk Advisor to assist with securing suitable insurance to cover your needs.
The insurance solution can only be ascertained once all the parties to the building contract are correctly identified and the appropriate cover determined, based on the contractual responsibility (insurance interest) you hold under the agreed building contract, including liability to third parties.
Overview
What does Construction Insurance cover?
Construction insurance is designed to cover contractors/businesses who are engaged in OR need to protect their:
- Civil engineering e.g. roads, dams, reservoirs, earthworks, tunnels, concrete bridges, piers, runways (Contract Works policy)
- Buildings in the course of erection (Contract Works policy)
- Machinery Relocation e.g. plant/machinery being dismantled and machinery transit by rail/road (Dismantling, Transit & Erection policy)
- Machinery Erection e.g. turbines, boilers, process plants, transformers, switchgear etc (Dismantling, Transit & Erection policy)
- Own plant and machinery or goods being manufactured and/or in their custody and control against impact damage and that which is not dealt with under a Fire policy (Works Damage policy)
- Construction plant whilst in storage, transit, on the contract site and while being used as a tool of trade. The policy can also be extended to cover the plant whilst underground and for machinery breakdown. In addition standard cover is available for hiring costs, legal liability arising out of the hire and continuing hire charges (Plant All Risks)
The two most common risk areas are Contract Works, as called Contractors All Risks and Plant All Risks, which essentially look to cover:
Contractors All Risks
Contract Works cover protects you against loss or damage to the works you have agreed to carry out, as set out in the contract documents, subject to the policy's exceptions. It also covers the legal liabilities you take on while performing those agreed works, again subject to the policy's exceptions.
You can arrange this cover for a single contract, or take out an open policy that covers every contract you enter into over a 12 month period. With an open policy, you will need to set a maximum Contract Value as your sum insured limit, and declare the actual total value of all completed contracts each year.
Plant All Risks
Plant All Risks cover protects you against loss or damage to your specified mobile plant, subject to the policy's exceptions. It also covers the legal liabilities that come with using that plant off road, again subject to the policy's exceptions.
On top of that, cover is usually available for hiring costs, legal liability arising from hiring the plant out, and any hire charges that continue to run.
