Construction Insurance

Construction insurance is designed to protect your assets and liabilities arising during the course of construction.

The policy is arranged under two Cover Sections;

The first protects your construction work including materials, tools, plant and equipment from loss or damage occurring during the construction period.

The second protects you against your legal liability (public liability) arising from you undertaking your construction work and causing injury or damage to a third party; it also includes cover for Products Liability (or Completed Operations Liability). This means that once you have completed your project and have handed over the work your liability for an injury or damage occurring to a third party as a result of your work is also insured.

Cover is offered on one of three bases:-

Annual Turnover OR Contracts Commenced OR Declared and Listed Contracts 

Annual Turnover Basis

This basis requires you to declare to us what you estimate you will receive in payment for the work that you perform during the next 12 months. You are also required to declare to us the value of any materials supplied by others that do not go through your financial accounts.

It is extremely important to note that cover will stop at the earliest of the following:-

a) upon completion of the work;
b) at the end of your Maximum Construction Period;
c) on the expiry date on the policy.

This basis is suitable for those builders who do not want the hassle of remembering to declare every contract or those who have quite a few jobs on each year or who undertake a lot of work as a sub-contractor.

Contracts Commenced Basis

This basis requires you to declare to us what you estimate will be the total value of all contracts that you will commence during the 12 months. This is the TOTAL contract value, plus the cost of materials supplied by others, even though the Contract Period my cross over two of your financial years.

A premium is then charted on this estimated which you pay before the policy will commence.

Once you have estimated the contract values each contract is then insured until the earliest of the following:-

a) upon completion of the work;
b) at the end of your Maximum Construction Period;

Declared and Listed Contract Basis

This basis requires you to declare every contract you undertake to us before you commence work otherwise it is not insured.

We ask that you provide us with an estimate of work to be commenced during the next 12 months. This value is the total value of each contract plus the value of any materials supplied by others. A premium is then charged on this estimate which you pay before the policy will commence. You are then obliged to declare to us every contract before you commence work. We then list that project on your policy schedule. If these increase the values to be insured beyond that estimated an additional premium is charged.

Alternatively you can “Pay as you go” and wait until you are about to enter into a contract, declare this to us and we will issue you with an invoice for that job. Once this premium is paid we will list that job on your policy schedule and the policy will commence to operate. This is more expensive than making an estimate of all work as higher rating and policy administration fees are charged due to the increased level of work and rating structure of the policy.

Once declared and listed each contract is then insured until the earliest of the following:-

a) upon completion of the work;
b) at the end of your Maximum Construction Period;

This basis is suitable for those builders who do not mind remembering to declare each project or those builders who do only a few jobs each year and want them insured until completion.

 
 

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