Contract works insurance, also known as builder`s risk insurance or construction all risks insurance, is a type of insurance that covers a wide range of risks faced by contractors working on construction projects. It protects the contractor against damage or loss of property, materials, and equipment, and also covers third party liability.
Here are some of the risks covered by contract works insurance:
1. Accidental damage: This covers damage caused during construction, such as damage to the building being constructed or damage to the materials and equipment used in the construction.
2. Theft and vandalism: This covers theft and damage caused by vandalism or malicious acts.
3. Natural disasters: This covers damage caused by natural disasters such as fire, storms, floods, and earthquakes.
4. Public liability: This covers the contractor against claims made by third parties for bodily injury or property damage resulting from the construction project.
5. Employer`s liability: This covers the contractor against claims made by employees for bodily injury or illness resulting from work on the construction project.
6. Professional indemnity: This covers the contractor against claims made by clients for damages resulting from errors or omissions in professional services provided by the contractor.
7. Delay in completion: This covers the contractor against losses resulting from delay in completion of the construction project due to an insured risk.
In summary, contract works insurance provides protection to contractors against a wide range of risks faced during the construction process. It is important for contractors to have this insurance to ensure they are adequately covered in case of any unexpected events that may occur during the construction project.