Projects insurance, also known as construction project insurance, is a comprehensive coverage solution designed to protect against various risks associated with construction and development projects. This specialized insurance safeguards your investment from potential financial losses due to accidents, property damage, or unforeseen circumstances during the project lifecycle.
Construction projects face numerous risks that can lead to significant financial losses. Projects insurance provides essential protection against these risks, ensuring that unforeseen events don't derail your project or impact your bottom line. It offers peace of mind to stakeholders, meets contractual requirements, and helps maintain project timelines and budgets.
Projects insurance typically operates on an "all risks" basis, covering all accidental damages to the contract work unless specifically excluded. The policy is tailored to the specific project, considering factors such as project value, duration, location, and type of construction. In the event of a covered loss, the insurance provides financial compensation to help get the project back on track.
Inclusions typically cover:
Common exclusions may include:
Contractors All Risk (CAR)
Even All risk covers like a CAR, can be improved with additional covers. You can claim a refund for a project completed before time or add expediting covers to ensure faster reconstruction, after a loss, to meet deadlines.
Erection All Risk (EAR)
When the machinery component exceeds 50% of the overall cost with civil construction being a smaller part, an Erection All risk is required. Factory erection, Electrical contract work, Networking contracts, HVAC installations all require an EAR.
Plant and Machinery (CPM)
Project site equipment are prone to high level of construction and erection exposures making them vulnerable to accidental damages. Limited covers can stall project progress despite repair cost cover in want of expediting expenses to speed recovery.
Marine and Storage Insurance
Projects can have tricky overlaps between transit and storage losses as transit damages may not be discovered early enough. One needs to create dual covers. Sites with Open storage need specific cover to ensure claims are not denied.
Advanced Loss of Profits (ALOP)
Projects delays can have a critical impact on the business including impairing loss of anticipated profits before operations are commenced. Such losses can result from damage during construction, erection or commissioning of the project.
Workmen Compensation
One of the large risks is injury caused to the manpower deployed including those by Contractors / Sub-contractors. If your contractors do not insure adequate numbers, you will be exposed to the liability risk as an Principal Employer.
Property insurance plays a decisive role in project insurance by protecting physical assets, materials, and equipment involved in the construction process. It safeguards against losses due to fire, theft, vandalism, and natural disasters, ensuring that your project can recover quickly from unforeseen events without significant financial setbacks
Transit insurance is an essential component of project insurance, covering materials and equipment during transportation to and from the project site. This coverage bridges potential gaps between different phases of the project, ensuring continuous protection for your valuable resources from the supplier to the construction site.
At Edify, we understand that every project is unique. Our team works closely with you to create a tailored project insurance solution that addresses your specific risks and requirements. We consider factors such as project size, duration, location, and contractual obligations to design a comprehensive policy that provides optimal protection while remaining cost-effective.
Premiums are based on factors such as project value, duration, type of construction, location, and chosen coverages. Our experts assess these elements to provide a competitive quote.
Standard policies typically don’t cover weather-related delays. However, we can discuss specialized coverage options for weather risks if they are a significant concern for your project.
Professional liability is usually not included in standard project insurance. We offer separate professional indemnity coverage for design and consulting risks.
Renovation projects often require more specialized coverage due to existing structures. We tailor policies to address the unique risks associated with working on or around existing buildings.
Yes, we can arrange blanket policies that cover multiple sites or projects under a single insurance program, which can be more cost-effective for larger organizations or developers.
