Construction Risk

The 2 primary types of risks on a construction project are property damage and third-party injury/material damage claims. To ensure that the project reaches completion without crippling expenses due to cyclone, theft or bodily injury, we will guide you in choosing the best policy and Insurer for this purpose.

1. Contractors All Risks: This policy is issued in the name of the contractor to cover the construction from phase one until he hands over the keys to the client in the event the project is affected by cyclone, flood, fire, theft, etc. This type of policy is also requested by banks when contractors or the owners need financial support for the property development.

The liability of the contractor and his employees or sub-contractors towards material damages or bodily injury caused to third party is also covered under a Third Party Liability. As we work with several well rated contractors and promoters on the island for major projects, it is a current coverage we subscribe for our policyholders. We strongly recommend our clients to insure their employees in the event of injury or accidental death through a workman compensation/ group pension scheme, which is a recurrent issue during the past years.

2. Decennial Liability: Decennial Insurance is a cover that can be taken out by those responsible for the design and construction of buildings to cover the cost associated with the total or partial collapse of a building after completion or the discovery of latent/structural defects that compromise the building’s safety or stability. The name derives from the fact that it imposed a ten-year liability, after completion of a project, on contractors and designers responsible for the design and construction of a building. Decennial liability acknowledges that the costs arising out of the complete or partial collapse of a building could be huge and may not be covered by other insurances.