Construction & Liability Insurance Policies

Construction and Liability Insurance policies are also known as ‘Contract Works Insurance’ policies and provide protection for material damage and legal liability against a range of construction-related risks, during the course of the construction.

Some of the main types of construction include:

• Buildings: Residential, Commercial, Industrial (including Renovations and Refurbishments of existing dwellings)

• Civil Works:  Roads, Railways, Pipelines, Bridges, Tunnels and Shafts, Dams, Water and Sewerage Plants, Towers

Types Of Policies Available

Project Specific Construction Insurance Policies

One off insurance designed for to provide insurance protection for a single project and its related risk (including owner builders).

Annual Construction Insurance Policies

Is based on the projected work of a contractor/ builder an annual basis. This policy provides flexible protection for contractors and the construction and related industries.

An Overview Of Common Policy Coverage

Material Damage

Provides cover for unforeseen physical loss or damage to the insured Contract Works that may arise during the construction period (and/or maintenance period if  elected).

Contract works commonly refers to works of engineering, construction, electrical or mechanical, installation or erection, including formwork, hoardings, temporary buildings or works, scaffolding, principal supplied material for incorporation in the works, and additions, alterations, refurbishment, or overhaul or pre-existing property.

You also should consider the policy features and benefits, as these vary from insurer to insurer and some are not automatically covered or may be sub-limited under the policy.

These include:

• Loss of Profits
• Removal of Debris/ Demolition Costs
• Professional Fees (Architects, Surveyors, Engineers)
• Variations and Escalation in Contract Value
• Expediting Expenses
• Mitigation Costs
• Materials in Transit
• Existing Property
• Contractors plant and equipment
• Reinstatement of Sum Insured

Public & Products Liability

Provides cover for Legal Liability for Personal Injury or Property Damage caused by an occurrence in connection with the insured Contract Works. (Note: Some insurers provide limited cover for Public (General) Liability Only.)

You also should consider the policy features and benefits, as these vary from insurer to insurer and some are not automatically covered or may be sub-limited under the policy. 

These include:

• Property in (your) Care Custody or Control
• Vibration Weakening or the Removal of Support
• Worker to Worker Liability