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Easy methods to ensure your valuable equipment

Civilsure understands the importance and necessity of comprehensive plant insurance at a reasonable rate. We also know that you expect impeccable service and attention to detail at claims stage. That is why we are committed to helping you choose the correct plant all risk (PAR) for your business needs.

PAR covers mobile and stationary plant while in operation or at rest on site and there are three ways in which you can insure your plant.

    Letter of Intent

    New replacement value (NRV)

    This requires input from suppliers regarding replacement value, including all other relevant costs. An average will apply if the sum insured is less than the replacement cost. In the case of a total loss, the insurer will pay the market replacement value of the item prior to the loss thereof. New parts may be claimed for old and no depreciation will be applied. Values must be updated regularly as suppliers increase their rates and value may be difficult to establish if a particular model has been discontinued. Transport and towing costs are also limited.

    Agreed value (AV)

    This is the value as agreed upon between the insurer and the insured. Including VAT, it should not be less than market value, but also not more than 20% above market value. In case of total loss, the insurer will pay the AV and partial damage, and depreciation of new parts will apply. The depreciation of new parts often causes frustration as it reduces the amount claimed. On the other hand, claims for second-hand parts are not subject to depreciation. Averages do not apply and transport and towing costs are limited.

    Market value (MV)

    MV means that the insured sum must equate the amount necessary to purchase property identical to the item insured and all relative expenses. If an identical replacement is not available, MV will replace it with one of a similar type, capacity, age, usage, maintenance, refurbishment and overhaul record. This type of insurance considers the individual condition of the plant and those under which it operates, and what the market would be willing to play for the item. The Loss Adjustor will apply depreciation to new parts in the event of a partial claim and, in case of a total loss, the insurer will pay the market value of the item prior to the loss thereof. If market value cannot be determined, the insurer will depreciate the new replacement value.

    Establishing market value is challenging and often results in the insured being either under- or over insured. If underinsured, an average will be applied, meaning that values must be updated regularly. Partial damage will incur depreciation on new parts and often causes frustration as the claim amount is often reduced in these cases. Transport and towing costs are limited.

    As with many things in life, there are extensions available and certain conditions apply. Contact us to discuss which method of insuring your plant is best for your business.

    CivilSure provides niche risk solutions to the construction and civils industry. We pride ourselves on delivering world class customer-centric services and specialist advice. We specialise in Construction Guarantees, Contractors’ All Risk Insurance, Construction Liability, Professional Indemnity and Plant All Risk Insurance.

    Trusted. Reliable. Partner. Since 2005.


    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’s the difference between a Performance Bond and a Performance Guarantee?

    The term Performance Bond is often misleading, which can leave contractors confused about the difference between a performance bond and a performance guarantee. Most construction Performance Bonds are actually Guarantees. Bonds and Guarantees are related but are different. The right to claim under a Guarantee is linked to non-performance of the underlying contract. Under a Bond, the bank usually pays on demand regardless of the underlying contract.

    Why you need Contractors’ All Risk insurance

    All construction work, no matter the size or complexity of the project, contains an element of risk. Find out why you need Contractors All Risk Insurance.

    Get your Letter of Intent almost instantly

    The term ‘Letter of Intent’ (LOI) is typically used to describe a letter from an Employer to a Contractor (or from a main Contractor to a Subcontractor) indicating the Employer’s intention to enter into a formal written contract for Works described in the letter, and asking the Contractor to begin those works before the formal Contract is executed. While an Letter of Intent may come in many forms, it’s essentially a communication expressing an intention to enter into a Contract at a future date.

    Are you ready for the summer shut down?

    As a responsible construction company owner, you know the importance of insuring your plant and making sure that your other necessary policies are in place with CivilSure. But did you know that the number of instances of – and the size of – liability claims litigation is higher than ever, and climbing?

    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.

    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.

    Plant Hire – Have you read the Contract?

    Have you read your plant hire contract? You should get evidence of the plant hire contract when you hire in a concrete pump truck or any other item of plant.

    Four types of Contract Guarantees and What They Insure

    Contract Guarantees in the construction, engineering, manufacturing and mining service industries are almost mandatory. Our range of Construction Guarantees are as varied as your requirements. Here’s a short list of the four types of Contract Guarantees and what they insure.

    When is a Performance Guarantee called on?

    Building Contractors often ask us the question: When is a Performance Guarantee called on? When your company starts bidding on projects for cities, provinces or municipalities, you’ll be expected to provide assurance that you can meet the obligations detailed in the Contract.

    This assurance comes in the form of a Performance Guarantee. Basically, what happens is that a surety company (an insurer or bank), for a certain fee, steps in and guarantees your performance. Surety companies don’t work directly with Contractors. Instead, they partner with brokerages like us.

    Civilsure Letter of Intent
    Civilsure Construction Guarantees
    Civilsure Contractors All Risk
    Civilsure Get A Quote
    Civilsure Construction Liability
    Civilsure Trade Credit
    Civilsure Professional Indemnity

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