Construction all risks insurance protects the works and the materials on site against sudden and unforeseen physical damage throughout construction, on residential, commercial, infrastructure and industrial projects. Written on an all risks basis subject to stated exclusions, it covers damage caused by fire, flood, earthquake, theft, faulty workmanship and accidents, and can also extend to third party liability arising from the works.
As the value of the works grows throughout the project, it is important to set the sum insured correctly on the basis of the contract value. Extensions such as the maintenance period, contractor’s plant and equipment, debris removal and existing property are added in line with contractual obligations. The scope is assessed against the nature of the works and the construction contract and confirmed in the policy wording.
Who is it for?
- Main contractors and subcontractors
- Real estate developers and investors
- Infrastructure and public works contractors
- Projects where lenders require all risks cover
Scope of cover
- Contract works and materials: All sudden and unforeseen physical damage
- Natural perils such as earthquake and volcanic eruption, flood and storm
- Damage from theft, faulty workmanship and accidents
- Contractor’s plant and equipment option
- Debris removal costs
- Third party liability arising from the construction works
- Maintenance period and existing property extensions
Scope of cover, limits and deductibles are determined by the insurer’s general and special conditions; the final scope is set out in the policy.
The Proxima Brokers approach
We review the construction contract, works programme and site conditions to identify the covers the project needs and the contractual insurance obligations. We approach the market, compare deductible and clause options, and manage changes such as period extensions and value increases throughout the project. When a loss occurs, we coordinate with the loss adjuster and insurer to help keep your works on track.