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Insurance, a vital tool in construction

Insurance, a vital tool in construction

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The ongoing development of infrastructure around us brings with it associated risks that  require the correct products, technical expertise and advice. Insurance is a vital risk mitigation tool in construction projects which relevant parties cannot afford to go without.

These risks range from devastating damage to projects under construction, plant on site and the substantial associated liability exposures that attach to contractors whilst doing work on site. Protection against these losses is required at every stage of construction.

It is also important to understand where the legal obligation lies for the parties entering into the contract and determining which party is responsible for which risk and the associated insurance coverage required especially when there are several contractors and sub-contractors involved. This will be determined by the works contract which creates the legal obligations along with terms, conditions and period for completion to name a few. The works contract will determine the party responsible for taking out the cover required which may be the Employer or the Contractor.

Insurance Zone provides a wide range of products to cater for these risks with the main covers as follows:

These may be once-off or annual depending on requirements:

Contract Works Cover:

  • Covers any loss or damage to the actual contract works during the construction and maintenance period selected on the policy. This is extended to cover removal of debris, cost of demolition, professional fees, storage and transit of materials and claims preparation costs.

Plant All Risks:

  • Comprehensive cover is provided for contractors plant and equipment and can also be extended to include hired-in plant that the contractor has been made legally responsible for.
  • It is important to obtain the correct advice when deciding on what basis and how to insure the plant as this may be insured on New Replacement value, Market value or Agreed Value.

Public Liability:

  • Provides cover against any Liability for loss, damage, death or bodily injury to any third party or third party property arising out of the Contractors performance of the works contract.
  • Includes legal defense costs and Wrongful Arrest.

Surrounding Property:

  • This provides cover for loss or damage to property which is in the custody or control of or is being worked on by the contractor and arising out of the work being undertaken in connection with the contract.

Contact Insurance Zone or one of our accredited Brokers to assist in designing the correct tailor-made product that is best suited to your needs and contractual obligations.