Insurance Flashcards
During construction what insurance(s) are required under the terms of an ABIC contract?
Public Liability Insurance, Contract Works Insurance, Worker’s Compensation (contractor)
Which party provides insurance policies during construction under ABIC? Who must hold them?
The contractor (unless otherwise stated) and must be held by the contractor.
When must the insurance policies be taken out and for how long?
When + to who are they transferred if at all?
As soon as the contractor takes possession of the site/ once contract is signed until Final Certificate.
They are transferred at Practical Completion and are taken over by the owner.
How are these insurances documented and who holds the documentation?
The insurance documents or a statement in writing of the provision of these insurances should be given to the architect following signing of the contract. This is provided by the party to the contract taking out the insurances.
What is the relationship between the architect’s actions and the “acts of god‟ clause?
The architect should obtain advice from the PI insurer on how to deal with this.
If the works can no longer be continued due to this, then the contract is frustrated.
Where only partial damage is caused, the contractor’s Home Warranty Insurance should cover this (contractor to contact insurer for advice on how to remedy).
Does the insurance policy for the works cover a situation where damage to the works occurs as a result of negligence by the contractor?
Yes, contract works insurance covers for negligence by contractors on site.
What happens when there is a break-in on site and tools to the value of say $1,500.00 are stolen?
Contract works insurance generally covers items on site used for building (tools, equipment etc). The contractor should ensure their policy covers this.
Consider a domestic alteration where the roof is partly removed and covered with tarpaulins by the Contractor (as part of the works) but during a rainstorm water gets inside and damages the carpets and furniture in the parts of the residence not subject to the alteration works? Is this damage covered by the “works” insurance policy?
Yes, the contract works insurance will cover accidental damage by external causes (i.e. water, fire, theft etc.)
