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INSURANCE OF PROPERTY EXPOSURES : CONSTRUCTION INSURANCE (EXCLUSIONS TO…
INSURANCE OF PROPERTY EXPOSURES : CONSTRUCTION INSURANCE
Construction All Risk Insurance
exists to insure buildings or projects under construction against the costs of repair or replacement in the event of an accident.
designed to protect owners and contractors from the devastating impact of the insured peril to a construction project.
SCOPE OF COVER
Covers any sudden and unforeseen physical damage to the insured civil project by any cause or peril but NOT the excluded peril under the policy
INSURED PERIL
-FIRE
-EXPLOSION
EXCLUDED PERILS
Loss or damage due to willful misconduct
Loss or damage due to faulty design
Cessation of work, partial or total
Deductible as mentioned in the policy document.
PARTIES TO CONSTRUCTION CONTRACT
WHO IS THE INSURED In the CAR policy ?
CONTRACTORS
In the Master –Servant Relationship
-If there are any damages to the building caused by the servant, master is answerable for any wrongful act of his servant.
EXAMPLE : A contractor hiring one or many sub- contractors to complete the task such as wiring, and electrical
The MASTER is CONTRACTOR – individual Seeking out of service or Advice of a professional
The SERVANT is the SUBCONTRACTORS – professional that will performing the task
SECTION 1
MATERIAL DAMAGE COVER
covers any unforeseen and sudden physical loss or damage from any cause, other than those specifically excluded to the contract/erection works (item/property insured) during the period of insurance
Contract works(permanent and temporary works forming parts of the contrac
Professional fees
Free issue materials
Construction equipment
SECTION 2
THIRD PARTY LIABILITY
a third person or organization less directly involved in a matter than the main people or organizations that are involved
Bodily Injury/ illness
Accident losses to the property damage to third party
Third party liability claims
Imagine you’re a builder working on scaffolding and you drop a brick that damages a car parked below.
In either case your business could be faced with a compensation claim.
This compensation payment can take into account medical costs, lost earnings, and the replacement or repair of damaged property
EXCLUSIONS TO SECTION II - THIRD PARTY LIABILITY
The Excess stated in the Schedule to be borne by the Insured in any one occurrence related to property damage
Expenditure incurred in doing or redoing or making good or repairing or replacing anything covered.
LIMITS INDEMNITY SECTION II – THIRD PARTY
Not exceeding the amounts specified in the Schedule against such sums which the Insured shall become legally liable to pay as damages consequent upon.
accidental bodily injury to or illness of third parties (whether fatal or not) - unlimited
EXCLUSIONS TO SECTION – I (MATERIAL DAMAGE)
Loss discovered only at the time of taking an inventory
Normal wear and tear-due to atmospheric condition
Loss or damage due to faulty design
The cost for rectification or correction of any error during construction
Loss of or damage to files, drawings, accounts, bills, currency, stamps, deeds, evidence of debt, notes, securities, cheques, packing materials
Any damage or penalties on account of the Insured's non-fulfillment of the terms of delivery or completion
INDEMNITY SECTION I – MATERIAL DAMAGE
applicable and not exceeding to all the total sum expressed in the Schedule as insured hereby
respect of such loss or damage as hereinafter provided by mode of payment in cash, replacement or repair (at their own option)