Construction insurance policies cover projects under construction. They insure the building materials and equipment onsite against fire, malicious damage, storm damage, water damage, accidental damage, impact by a vehicle and theft.
Typical coverage includes:
- Material loss or damage to the works and
- Legal liability to third parties.
The cover can be arranged on a project specific or an annual / floater basis to cover all work throughout the year.
Material Loss or Damage:
This section of the policy provides indemnity for the insured parties and should reflect the complexities of the contract entered into. The policy should specifically include the contractor, the principal, sub-contractors, financiers and other parties to the contract.
The cover arranged would normally also feature coverage for the following items:
- professional fees
- debris removal and cost of dewatering
- coverage for public authorities
- air freight and other charges
- inland transit
- off-site storage
- mitigation costs
- plans, documents and data loss