Construction All Risk

The Construction All Risk insurance provides all risks coverage during the construction period against loss or damage to property, third-party liability for accidental bodily injury or property damage during the performance of the contract, and delays in starting the project. The insurance solutions cater to a broad range of contracting companies, from renovation contractors, construction companies, equipment installation, and service engagements, to sub-contracting works that can potentially create problems, liability claims and court proceedings. When problems arise, they can be adverse knock-on effects and liabilities.

Construction industry risks generally fall into the following categories:

1. Physical damage: extreme weather events, fire, explosions, vandalism, and theft.
2. Third-party risks: injury and third-party property damage, environmental impact.
3. Design: errors, delays, sudden change requests from stakeholders.
4. External factors: regulations, tax laws, macroeconomic variables, negative public opinion.
5. Compliance: lapsed permits, improperly filed or incomplete documents sent to local authorities.
6. Project management and organizational matters: workforce inexperience, supply chain problems, safety hazards, scheduling conflicts, delays, and cost overruns.
7. Contractual obligations: failure to reach the expected quality level, use of improper materials.

The Construction All Risk policies are available on a project or blanket basis depending on your needs:

1. Project Policy – covers you for the project’s duration, including the contractual defects liability period.
2. Blanket Policy – covers an agreed profile of projects declared within a pre-agreed declaration period.

Our team of construction industry specialists will work alongside you to craft the insurance solutions that are unique to the projects after assessing the risks, minimizing uncertainty and embracing safety as a business enabler. Touch base with us to discuss how we can support you in your projects today.

In considering a Construction All Risk insurance, you need to take into account the following:

1. Contract Works
   • Property insurance covers structures and materials associated with the job in the event of damage.
2. Professional Fees
   • Covers the cost of consultants, such as architects or surveyors, required to help rectify damage to the contract works.
3. Third-party liability
   • Protection against claims made in the event of accidents or damage to property.
4. Environmental Liability    
   • Protection against accidents that pollute the land, air, and water, or harm natural resources and/or biodiversity where the clean-up cost is hefty. The Environmental Liability insurance will cover the costs of restoration.
5. Latent Defects
   • Property developers and building contractors are protected against damage caused by defective design or workmanship discovered later. Latent Defects insurance covers costs associated with remedial work. The policy can be used up to 12 years after the job’s completion.
6. Construction Professional Indemnity
   • Construction Professional Indemnity is protection against claims made in the event of negligent work, poor advice, errors and omissions.
7. Delay in Start-up/Non-damage Delays Insurance
   • Protects against loss of revenue resulting from damage to works and structures that cause a delay in completing the project.
8. Non-damage Delays Clause 
   • 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.

Whatever the risks you may be facing in a construction project, our team of professional experts will be able to provide business advice and bespoke insurance solutions for each unique project you are undertaking so that you have peace of mind to focus on delivering a quality project. Book an appointment to chat with us over a cup of coffee to discuss more.