Types of Insurance on Construction Project | CAR Policy

In this article we will discuss briefly types of building construction insurance. Also you can get knowledge about all risks insurance (car policy), professional indemnity insurance, product liability insurance, public liability insurance, latent defects insurance.

Types of Insurance on Construction Project CAR Policy

Types of insurance on construction project | car policy

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Read more: Procedure of Contractual Claims in Construction Contract...

Types of Insurance on Construction Projects

There are five common types of insurances,

All risks insurance. (car policy)
Professional indemnity insurance.
Product liability insurance.
Public liability insurance.
Latent defects insurance.

All risks insurance.

All Risks Insurance is an insurance modality that covers all types of Engineering Civil Works. All risk insurance also knows as contractor all risk insurance, CAR Policy. This includes the fundamental aim of protecting against the accidental loss or damage to the works, including the contractor's construction plant and equipment, as well as third parties' claims due to personal damage, provided that these directly result from such construction works.

Read more: Contractor all Risk Insurance | CAR Policy

Professional indemnity insurance.

Professional indemnity insurance insures against liability arising from professional negligence. This usually includes a contractual liability that is equivalent to professional negligence, such as a breach of a contractual obligation to exercise reasonable skill, care and diligence when carrying out design. Architects, engineers, other professional consultants and a building contractor that owes a design responsibility to its employer are usually required to maintain such insurance.

Product liability insurance.

Product liability insurance protects against liability for injury to people or damage to property, arising out of products supplied by a business. Suppliers of equipment to a construction or engineering project, such as lifts or escalators, may be required to maintain such insurance, sometimes in place of professional indemnity insurance.

Public liability insurance.

Public liability insurance covers liability arising from death or personal injury to third parties other than the insured's own employees and for damage to property belonging to third parties.

Latent defects insurance.

Latent defects insurance is also known as decennial insurance. Typically protects the owner against the cost of remedying the structure of a building, due to a defect. Usually, it lasts for ten years from the original construction of a building. Typically, a building owner must arrange the cover in advance.

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Tuesday, October 29, 2019

Type of Insurance of Construction; CAR Policy