Construction sites are, by nature, high-risk areas. Developers and contractors are faced with a myriad of risks that can financially cripple a project – and, possibly, one or more of the companies involved. When problems do arise, they can bring negative knock-on effects and additional liabilities.
Sub-contracting of various specialised works can create other contractual problems, liability claims and court proceedings.
Use an experienced broker to get you the right cover that will respond when you need it most. We will help you conduct contract reviews and ensure that the insurances we arrange are effective.
What is constructors all risk insurance?
It’s called ‘all risk’ because that's what it intends to cover. Policies are worded to provide peace of mind around the enormous risks construction companies face. Construction all risks insurance covers against loss or damage to the contract works caused by:
• Accidental damage
• Natural perils
• Basement and substructure construction works
• Design errors (consequential damage only)
• Testing and commissioning
Policies also cover legal liability for injury to third parties or damage to third party property.
What does builders’ all risk cover?
A builders’ all risks insurance policy wording should contain a combination of cover around the following elements:
A form of property insurance that covers structures and materials associated with the job in the event of damage.
Covers the cost of consultants, for example, architects or surveyors, required to help rectify damage to the contract works.
Third party liability
Protects you against claims made in the event of accidents or damage to property.
If you have an accident that pollutes land, air or water, or harms natural resources and/or biodiversity, the clean up can land you with a huge bill.
Environmental liability insurance is there to cover the costs of restoring the equilibrium.
Typically used by property developers and building contractors, to protect them against damage caused by defective design or workmanship that is undiscovered until later.
Latent defects insurance covers costs associated with remedial work. The policy can be used up to 12 years after the job’s completion.
Construction professional indemnity
Construction professional indemnity protects you from claims made in the event of negligent work, giving poor advice or errors and omissions.
Call and speak to a broker about getting a bespoke package to meet your needs precisely.
Delay in start-up / non-damage delays insurance
A bolt on to the standard all risk cover, which can provide a lot of reassurance for you and your partners, is
Delay in start-up
Sometimes called “advanced loss in profits insurance”, delay in start-up insurance protects against loss of revenue resulting from damage to works and structures that causes a delay in completing the project.
With a no-damage-for-delay clause, primary contractors can find themselves liable to pay damages to subcontractors if the project is delayed. A ‘no damage delays’ clause transfers this risk (under certain conditions; delaying on purpose is excluded).
Policies are available on a project or blanket basis.
A project policy covers you for the duration of the project including the contractual defects liability period.
A blanket policy covers an agreed profile of projects declared within a pre-agreed declaration period.
Where your project is financed, the lender may require other insurances to be procured to safeguard their financial interest in the project.