Please enable JavaScript.
Coggle requires JavaScript to display documents.
INSURANCE AND BONDS :fire: (IMPORTANCE OF INSURANCE (CONTRACTS PROVIDE,…
INSURANCE AND BONDS :fire: 
When employers and contractors enter into construction contracts, they are basically taking risks
THUS, taking insurance is an important part of the provisions (peruntukan) in construction contracts
INSURANCE DEFINITION
“A contract of insurance is any contract whereby one party assumes the risk of an uncertain event which is not within his control, happening at a future time, in which event the other party has an interest, and the first party is bound to pay money if the uncertain event occurs
-
-
The construction contracts contain express and implied terms distributing risks to the contracting parties
In relation to risks imposed on contractors, the contracts require them to provide insurance coverage
an important policy to have if you own, run or manage a construction site
CONTRACTS PROVIDE
-
Construction insurance does not exempt you from maintain a safe workplace, BUT
Usually, construction insurance policies only pay out if a strict set of health and safety guidelines are followed
-
Considering the fickle nature of the construction industry, insurance can be comprehensive and cover a multitude of possible problems
The cost of solving these problems is normally many times the cost of the insurance premium. This is why construction insurance is an essential part of a construction budget.
-
- What typically does a construction insurance policy cover?
A) basic level
construction insurance covers all construction equipment and property in the case of accidental damage, theft and weather.
-
- How much construction insurance typically cost?
-
-
- What typically does a construction insurance policy not cover?
he transportation of building materials from warehouse to building site is not normally covered but some of the better insurers are now covering this as standard.
Construction insurance does not cover any extra costs incurred due to delayed completion of the project regardless of the reason for delay.
-
B) Loss insurance policy
Insured person is entitled to be compensated by the insurer for loss or damage suffered whether caused by accident or negligent.
A loss insurance policy provides cover, not for a person’s legal liability to others, but for losses which fall directly upon that person
In construction, such cover is required by a client on whom the contact places of risk of damage to the contract works
-