Construction & Infrastructure Insurance
Construction insurance is a broad categorization of insurance policies that provide protection during construction projects. The term “construction insurance” refers generally to insurance that relates to construction projects, and it is not itself an actual form of insurance.
Many factors dictate the type of construction insurance coverage one would need for a given project or business. These factors include, the person’s relationship to the project (contractor, property owner, subcontractor, etc.), the type of entity buying the insurance (business or individual), and the type of property to be covered.
Scope of cover
RESIDENTIAL
- Houses/Apartments/Township, Cottages/Guest Houses
COMMERCIAL
- Office Buildings, Multiplexes/Theaters, Hotels/Shopping centers/Malls, Sports Complexes
INSTITUTIONAL
- Educational Institutes, Hospitals/Health care facilities, Research Institutes, Religious Buildings
What it covers?
- Fire/Explosion/Impact Damage/Collapse.
- Storm/Tempest/Flood Inundation/Subsidence and Landslide.
- Riot/Strike/Malicious Damage/Burglary/Theft.
- Electrical/Mechanical Breakdown
ADD ON COVERS
- Owners’ Surrounding Property
- Removal of Debris
- Earthquake/Terrorism
- Escalation
- Design Defect Cover
- Breakage of Glass
- Additional Customs Duty
- Airfreight
- Express freight, Overtime charges, Holiday wages etc.
- Contractors’ Plant & Machinery (up to 5% of CAR SI or Rs 25 lakhs whichever is lower)
- Third Party Liability
- Free Issue of Materials issued by Principal.
- Construction equipment like scaffolding, shuttering materials
- Maintenance Visit or Extended Maintenance
- Cover for insured contract works taken over or put into service.
What it does not cover?
- Cessation of work whether total or partial.
- Defective Material and/or Workmanship.
- Wear and Tear.
- Inventory Losses
- Faulty Design
- War and Related Perils
- Nuclear reaction, Nuclear radiation, or radioactive contamination.
- Wilful act or wilful Negligence of the Insured.
- Consequential Losses