Construction Insurance

Construction and Liability Insurance provides asset protection for one of the largest industries in Australia. This Policy class provides two separate products packaged together to provide maximum protection, A summary of the protection offered is:

Section 1 - Construction Insurance

Construction insurance was designed specifically to protect construction materials against physical loss or damage throughout the construction process. Includes but not limited to:

• All materials for incorporation into the project whether permanent or temporary i.e., formwork, scaffolding, site buildings, security fencing and hoardings to name a few.
• Existing structures can also be covered during this process as well as the Insured’s tools, plant and equipment and owner or principal supplied materials. Coverage can extend to include offsite storage and transit.

The main consideration of coverage is who has the contractual responsibility for the materials and structures. If a loss does occur, additional benefits are provided to enable rectification to commence as quickly and efficiently as possible. These benefits are essential and include:

• Removal of debris for site cleans up following loss.
• Professional fees for architects and engineers and other professional services Expediting expenses where parts need to be replaced urgently.
• Mitigation cost reimbursement to prevent further damage
• Margin for escalation where costs increase throughout the project due to economic factors thus increasing the cost of rectification.

These covers are generally capped at 5-15% of the contract value.

Section 2 - Legal Liability Insurance (Public Liability and Products liability)

This section provides protection against your legal exposure to:

• Third party Property Damage and associated Financial loss
• Third party Bodily Injury

Depending on the type of policy taken, it can provide protection during the construction and maintenance period and extend to cover completed projects. It also provides limited protection for property in your legal control.

Due to the complex nature of a construction site where multiple trades work simultaneously, a unique feature of this product is the protection provided to not only the Insured, but Principals and sub contractors alike, this opens up some interesting contractual exposures that the Insured should obtain specialist advice.

The Construction Industry can be broken down into several categories, all with their own specializations.

Domestic Construction – Houses, multi units, renovations and installations

Commercial and Industrial Construction – Warehouses, low rise and high-rise office space, Factories and Commercial strata.

Civil Construction – Mining, bridges, tunneling, sewerage and drainage works, site works

Erection and installation of Plant and Machinery – also known as EAR risks, this provides protection from office air conditioning installation to power station installation.

Contact us today to assess the best construction insurance package for your industry. Call us on 1300 550 665 or email customerservice@shcorp.com.au