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What is not covered by a Contractors All Risk Policy?

by | Jul 31, 2018 | Contractors All Risk | 0 comments

What is not covered by a Contractors All Risk Policy?

The main part of the Contractors All Risks insurance is the Contract Works section which provides cover for the property being worked on (e.g. new house, etc.). But it’s important to be aware of what’s not covered by a contractors all risk policy.

these are just a few examples of what’s not covered by a contractors all risk policy :

  • Construction plant, equipment and tools
  • Consequential loss – loss due to delay, loss of any kind or description whatsoever including penalties, lack of performance, loss of contract, liquidated damages
  • Losses discovered when an inventory is taken
  • Existing property – unless it’s been specifically included in the cover
  • Faulty design, workmanship or materials
  • Errors and omissions
  • Stoppage of work whether total or partial
  • Willful acts or willful negligence of the Insured or of his representatives
  • Political acts ( these are insured under SASRIA)
  • The excess or the deductible stated in the Schedule

Are sub-contractors covered by a Contractor’s All Risks Policy?

This depends on the requirements of the Contract. Not all Contracts will require the Main Contractor to name sub-contractors as Insureds in their Contract Works policy. This in some cases they they are not covered by a contractors all risk policy.

Some sub-contract agreements require the sub-contractor to take out their own Contract Works Insurance and to name the Main Contractor and Principal as an Insured.

Typical contract trades for Contractors All Risks insurance cover would be general building contractors, air conditioning/heating engineers, aluminum door installers, electricians, shopfitters, bricklayers, carpenters/joiners, plumbers, plastering/partitioning/dry walling and floor/wall tiling contractors.

The Contract Works policy should follow the requirements of the Contract so it’s essential to understand the Contract properly to ensure that it mirrors the insurance policy correctly.

 

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What is not covered by a Contractors All Risk Policy?

The main part of the Contractors All Risks insurance is the Contract Works section which provides cover for the property being worked on (e.g. new house, etc.). But it’s important to be aware of what’s not covered by a contractors all risk policy, these are just a few examples:

Why is a Contract Works Policy Necessary?

When it comes to planning a new construction project, insurance doesn’t always get the priority it requires, with contractors often wondering whether it is really necessary to take out a contract works policy at all. Very often the contract works policy is arranged at the last minute, or even after the project has already started.

Determining The Value Of Your Plant

To determine the value of construction plant we investigate Market Value, Fair Market Value, Replacement Cost, Replacement Value & Actual Cash Value

What Are Latent Defects?

A Latent Defect is a defect that is not detected by ordinary inspection, but lies hidden until sometime later, when it’s discovered because it causes a problem that everyone can see.  An example of latent defects would be weak concrete in part of a bridge column, that looks the same as strong concrete, but collapses when a heavy truck drives over the bridge.

What is a Contractors All Risk Insurance policy?

A Contractors All Risk insurance policy, provides cover for the contract works, surrounding property, contractors’ public liability, SASRIA, Special Risks..

How Does a Contractor Claim For An Extension of Time?

A Contractor can claim for an extension of time, thus extending the Due Completion Date for a project. He can also claim for any costs which will increase due to being on site for longer (called time-related General Items).

What is ‘Practical Completion’?

Practical Completion doesn’t mean the Contractor has finished the Works in every detail. It means the Works are sufficiently complete to be safely used by the Employer for the purpose he intended. The Contractor may still complete minor items and fix defects after Practical Completion, as long as the Employer isn’t inconvenienced.

What is Plant All Risk Insurance?

Your onsite machinery (plant) is vulnerable to a number of problems such as breakdowns, vandalism and theft. Missing a project deadline can be bad news for your bottom line as well as your reputation. Plant All Risk Insurance covers you for loss of, or damage to, construction plant and equipment whilst in storage, transit, on the contract site or being use as a tool of trade.

Contractors All Risk
Construction Guarantees
Construction Liability
Professional Indemnity

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