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Contract Works insurance is a policy designed to protect your investment against damage to or theft of materials from your site or in transit to the site together with damage to the building in the course of construction.
The policy will not only protect your own and hired in plant against risks such as theft but also vandalism, fire and flood to name but some of the extended perils available.
Plant and Machinery is continuing to be a target for thieves irrespective of whether the item is a cement mixer or excavator. Indeed, it is not uncommon for thieves to visit properties as they are approaching completion and remove kitchens, appliances and the like.
This policy is primarily for the larger claim that will affect your livelihood. Small tools and equipment and indeed materials often go astray on site. To this end the excesses under the policy usually range from £500 upwards. Frequent small claims would increase the premium to an uneconomic amount.
Irrespective of your business size, think of the maximum value of any one contract you may undertake and you will soon appreciate the need for contract works cover.
Covers are available for both residential and commercial builders and are tailored to suit the projects you undertake.
Therefore, Contract works insurance covers your contractual requirements to insure loss or damage to the works including items on site to be included in the works. The goods and materials comprising the works will have to be replaced at your expense if you go uninsured.
Broad "accidental damage" cover for insured works includes such incidents as fire, theft, water damage, flood, malicious damage, storm, impact, subsidence, landslip and earthquake.
As a guideline, the following benefits are usually included in such policies:
Overview
1. Indemnity to Principals
2. Contractual Liability
3. Compensation for Court Attendance (£250 per Employee, £500 per Director/Partner or Principal per Day)
4. Design/Formula/Advice (Not For a Separate Fee)
5. Employees and Visitors Personal Belongings
6. Legal Expenses arising from Health and Safety Legislation
7. Wide Definition of Bodily Injury
8. Motor Contingent Liability
9. Inefficacy (Unless Deleted Due To Occupation of Insured)
10. Tenant’s Liability for Hired or Rented Buildings.
11. Wide Definition of Employee
12. Tool of Trade Risks
13. Liability of Sub-Contractors
14. Unsatisfied Court Judgments
15. Cross Liabilities
16. Consumer Protection Act 1987 and Food Safety Act 1990
17. Car Park and Cloakroom Liability
18. Defective Premises Act Liability
19. Overseas Personal Liability
20. Pollution is Sudden, Identifiable and Unintended other than in North America where a Total Exclusion Applies.
21. Covers Employees Temporarily Working Overseas.
22. Data Protection Act.
23. Provisional 28 Days Cover For JCT 21.2.1 Contracts (£500 Excess).
24. Financial Loss Cover with a Limit of £25,000 – Claims made during the period of insurance or up to 30 days after expiry.
Tools Section
1. Covers loss or damage to plant, tools, equipment and
personal belongings owned by the Insured or their Employees including transit
2. Excludes theft or attempted theft a. by the Insured or any partner, director, family
member or anyone employed by the Insured b. from any unattended vehicle, unless the vehicle has all points of access closed and secured by all the locks and other protections fitted, and all the keys are removed, and between the hours of 9.00 pm and 6.00 am is kept in a securely locked building.
3. Excludes Loss due to unexplained disappearance or inventory shortage.
4. Excludes wear and tear, depreciation, electrical or mechanical breakdown, failure or breakages.
5. Excludes loss or damage to any mechanically propelled vehicle or waterborne vessel or craft.
6. Excludes loss or damage outside of Great Britain, Northern Ireland, Channel Islands or Isle of Man.
7. Excess of £100 applies each and every loss.
Contract Works Section
1. Cover includes up to 25% of contract price in respect of removing debris, dismantling or demolishing, shoring or propping up following a loss.
2. Professional fees in respect of reinstatement following
damage.
3. Re-writing or re-drawing plans following damage up to
£25,000 limit
4. Additional interests.
5. Speculative buildings up to 180 days after practical
completion (for full contract limit)
6. Showhouses and contents covered. Limit for contents £50,000 per property.
7. Continuing hire charges where Hired in Plant covered.
8. Free issue materials.
9. European Union and Public Authorities Clause.
10. Damage to security devices – reduced excess of £50 if an attempted theft of plant results only in damage to the security devices.
11. Incidental hiring of plant with a limit of £35,000.
12. Loss of keys – limit of £1000 and excess of £50
13. Taken into use – cover provided if any part of the permanent works are taken into use as a private dwelling or office.
14. No exclusion regarding theft of or from unattended vehicles.
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