WK3AM - Insurances Flashcards
Q1. What are the 2 types of insurance and explain the differences between them?
Liability – Pays out when you are liable for damages
Loss – Covers a wider range of damages even if someone else is at fault
Q2. What construction risks need to be considered by contracts?
Professional indemnity, personal injury/death, damages, theft, vandalism, natural disasters, damage to property.
Q4. Explain the difference between indemnity and insurance?
Indemnity – covers other parties’ losses in case of an event (a promise).
Insurances – Policy and financial backing to keep promise.
Q5. Explain the different types of insurance required under JCT 16 relating to people and property. If you were working for a Client what length of cover would you advise and why?
public liability insurance, employer’s liability insurance and insurance of the Works
Section 6. Injury or Death. Indemnity against personal injury or death as a direct result of the works to any person. Cover until end of rectification period else the client will be liable.
Q6. Explain the different types of works insurance required under JCT 16. What is the length of cover required and why?
- Option A or B (New buildings)
- Option C (Existing)
Cover till issue of practical completion certificate
Q7. Name 2 insurances required by UK law.
• Employers liability insurance
• Motor insurance
- Public liability insurance
Q8. Why is it important that QS’s advise a client on the insurance provisions required?
What should you look for when assessing the cover?
As it is part of the scope of works as a QS.
Advise on time scale, cover period, exclusions, financial backing evidenced, at risk, joint names, excess levels, risk management, worst case scenario etc.
Q9. Who is responsible if damage to adjacent property occurs but neither the Emp or MC are negligent? What can the Emp do to cover this risk?
Employer would be responsible – actions occurred on his land.
Joint names insurance.
Q10. If the Employer has paid for materials on site which are subsequently stolen who is liable for their replacement (JCT SBC 16) and why?
Materials on site are covered by works insurance. Depends on insurance selected.
Q11. What if the insured goes bankrupt and you have a right to claim against him?
What if the insured has missed a payment?
Third Party Rights – Client can claim on insurance policy held previously by the bankrupt party. If payment has been missed, then insurance policy is void.
Q12. If the risk holder does not take out the insurance what can you do?
Who is liable for any shortfall and why?
Take out your own insurance policy.
If insurance is due to expire ask for proof of renewal before expiration date.
If not renewed take out of next variations (deduct cost). If there is a shortfall in cover person responsible for insurance must cover this.
Q14. What is the difference between all risks and specified perils?
All Risks – Broader/Wider ranging
Specified Perils – Covers losses resulting from predefined text in the policy.
Q15. What are Excepted Risks?
Employer Responsible – JCT defines contractor risks. Everything else the client is responsible for.
The use or occupation of the works by the employer, its agents, servants or contractors.
Any fault, defect, error or omission in the design of the works (other than design provided by the contractor).
Riot, war, invasion, act of foreign enemies or hostilities.
Civil war, rebellion, revolution, insurrection or military or usurped power (not including terrorism).
Radiation or contamination by radioactivity.
Pressure waves caused by aircraft or other aerial devices travelling at sonic or supersonic speeds.
Q18. What are the advantages of using the Joint fire code? If the contractor breaches the code what action should be taken by the contract administrator?
.a series of simple precautions and safe working practices (to) ensure that adequate detection and prevention measures are incorporated during the design and planning stages and that work on a site is undertaken to the highest standard of fire safety.’
Requiring compliance with the code in a construction contract can lead to a reduction in insurance premiums, however, failure to comply with the code could then result in the withdrawal of insurance which might be considered a breach of contract.
Q3. What is the reason for insurance in a standard form of contract? What are the main risks to a project (in relation to health & safety)?
Be covered for allocated risks.
To protect against Death and injury to persons, fire etc. Loss or damage to property.