CALL US ON 080 777 777 1

When a Disgruntled Employee Sabotages Your Structure…

by | Oct 15, 2015 | Contractors All Risk | 0 comments

Contractors Liability & Sabotage by Disgruntled Employees | CivilSure

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.


Submit a Comment

Your email address will not be published. Required fields are marked *


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

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.

Construction of the Tallest Building in South Africa

Read the history >> Construction of the tallest building in South Africa, the Carlton Centre. Built in 1973 and designed by architects Skidmore & Owens.

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.

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 does Contractors All Risk cover include?

INSURANCE FOR THE CIVIL & CONSTRUCTION INDUSTRY CALL US ON 080 777 777 1 What does Contractors All Risk cover include? Contractors All Risk (CAR) insurance is usually provided on a monthly or once-off basis and provides protection for individual construction...

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).

When a Disgruntled Employee Sabotages Your Structure…

Does Contractors Liability on the Contractors All Risk policy cover damages to a structure, caused by a disgruntled employee’s pre-meditated sabotage?

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.

Does a Construction All Risk Policy cover damage to surrounding property?

Yes, damage to surrounding property is covered by a construction all risk policy, provided it’s included as an add-on to the Contract Works cover. This means an extra premium would be charged to get the specified surrounding property covered.

CALL US ON 080 777 777 1

Pin It on Pinterest

Share This