Insurances

Question 1

What is public liability insurance / third party liability insurance?

Answer 1

To protect against third party property damage or injury

Question 2

What is employers liability?

Answer 2

Legal requirement to trade

Cover for property damage or personal injury sustained by employees

Question 3

Construction All Risks Insurance

Answer 3

Cover for physical loss or damage to work including damage by specified perils

EOT granted for damage caused by specified perils

Joint names insurance - all parties are entitled to see the policy, the insurances will be in the name of the client, contractor, subcontractors, etc and can go direct to the policy for recovery

Question 4

What are specified perils?

Answer 4

Fire, lightning, explosion, storm, flood, earthquake

Question 5

Construction All Risks Policy - JCT options

Answer 5

Option A - New buildings (contractor insures)

Option B - New buildings (employer insures, usually the preferred option as they can include delay in start up which covers the late delivery of the project for specified perils, covers LDs)

Option C - Joint names insurance by the Employer of existing structures and works in or extensions to them

Question 6

What is delay in start up insurance?

Answer 6

CAR Option B - Employer can take out CAR insurance and include this as it is a form of insurance for the clients direct loss

Question 7

What is non-negligent insurance?

Answer 7

Insurance for third parties where no negligent act has taken place, as in this case public liability may not cover

E.g. piling vibrations causing neighboring damage