Please enable JavaScript.
Coggle requires JavaScript to display documents.
Chapter 9:Construction Insurance - Coggle Diagram
Chapter 9:Construction Insurance
Introduction
Construction insurance is to provide financial security for all the parties involved in a project during the course of construction of that project.
Provide Protection For
Employer
The party who commissions the work or referred as the 'Principle"
Main-contractor
The contractor carries out the construction and manufacturing parts of the contract works
Sub-contractor
Nominated by the employer or employed directly by the main-contractor.
Type of construction insurance
Contractor's All Risk Insurance
-C.A.R
Refers to the building or civil engineering projects which may not involve electrical
Erection All Risk Insurance
-E.A.R
Refer to the installations of plant or electrical/mechanical projects
Contractors' All Risks (CAR) Insurance
Section 1:Material Damage
The insurer will indemnify the insured in respect of loss or damage to the property insured arising from any cause (all Risk), subject to the exceptions stated in the policy .
Property insured
Contract Work/Permanent Work/Temporary Work. For example formwork
Constructional tools and equipment. For example hand tools,hoist etc
Construction machinery. For example cranes, earth moving equipment etc
Special exclusions
Section 2:Third Party Liability
The insurer will indemnify the insurance against sums which the insured become legally liable to pay as 'damage consequent upon': 1.Accidental bodily injury to/illness of third parties (fatal/not).2.Accidental loss of/damage to the property belonging to third parties
Insurer also indemnify the insured against
All cost / expenses of litigation recovered by any claimant from the insured.
All costs/expenses incurred by the insured with the written consent of the insurer.
Period Of Cover
Maintenance period is 6 to 12 months
Expire on the date specified in the policy schedule
Scope Of Cover
Eraction All Risk (EAR) Insurance
Scope Of Cover
Section 1:Material Damage
Property insured
Erector, plant, equipment and machinery.
Items to be erected. For example machinery, metal structures,construction plant, etc.
Erection Work.
Special Exclusions
Section 2: Third Party Liability
The insurer will indemnify the insured against sums which the insured become legally liable to pay as'damage' consequent upon: 1. Accidental bodily injury to/illness of third party(fatal/not) 2.Accidental loss of/damage to the property belonging to thrid parties
Special Exclusions
Period Of Cover
Shall expired on the date specified in the policy.
Maintenance is 6 or 12 months.
Underwriting consideration(construction insurance)
The insured
Status of insured
For example Experience
The contract
Estimated value of the contract or the estimated period of construction/erection etc
The work and the site
Full description of work to be done together with supporting plans and sketches
The Construction/erection plant
Details of the type of plant, equipment/machinery that will be used in the construction/erection.
For Example compresssiors, hoistscranes,concrete mixer, etc
Claim Condition (CAR&EAR)
Insured Shall:
Immediately notify the insurer by telephone/telegram as well as in writing-giving an indication as to the nature and extent of the loss/damage(within 14 days)
Take all steps within his power to minimize the extent of the loss/damage.
Preserve the parts affected and make them available for inspection by a representative or surveyor of the insurer.
Furnish all such information and documentary evidence as the insurer may required.
Inform the police authorities in case of loss/damage due to theft or burglary/which involved third party(injury/death/property damage)