Does the Contractors Liability on the Contractors All Risk Policy cover damages to a structure that has been caused by a disgruntled employee’s premeditated intention to sabotage the structure?
No, this would be deemed “Defective Workmanship” which is an exclusion for Contractors Liability on the Contractors All Risk Policy, however the consequential loss and damage that would result in the above mentioned scenario would be covered through the Contracts All Risk Policy (Contractors Liability). In other words, the loss or damage the falling or broken structure has caused to any third party would be covered but not the cost to rebuild this structure.
Should this have been as a result of Civil Commotion or a Riot this would have been covered by SASRIA.
The Defective Workmanship can be accommodated by a product known as the “Design and Construct Professional Indemnity”,
however; it would be difficult to prove the above scenario was due to the disgruntled employee’s pre-meditated intentions to sabotage and the cost that would be incurred trying to prove this would most likely outweigh the cost to replace the structure from your own expenses. It might also fall on you, as you would have to have certain protocol in place to ensure that the employees are managed and should there be any disgruntled employees, the risk of them sabotaging anything should be addressed beforehand by preventative steps.
To read more about Design and Construct Professional Indemnity Insurance, click here.
