Have questions about Construction Insurance?
We have organised answers for your common questions on our FAQs page.
Course of Construction Insurance – Fire and Extended Perils Policy
Course of Construction provides coverage during construction or renovation of personal property. This policy covers damages to property caused by the following events:
- Fire or explosion
- Impact (by vehicle and aircraft)
- Lighting and thunderbolt
- Riot
- Smoke
- Earthquake
- Leakage from Fire Protective Equipment
- Windstorm or Hail
Contractors’ All Risk
Contractors’ All Risk is purchased by the contractor for insuring properties under construction or renovation. This policy covers property that is lost, destroyed or damaged during the period of Insurance by but not limited to the following perils:
- Fire or explosion
- Storm or flood (including rain or overflow of the sea)
- Hurricane, cyclone or tornado
- Lightning or thunderbolt
- Earthquake or volcanic eruption
- Malicious or willful acts
- Riot or civil commotion
- Water escaping from any apparatus, tanks or pipes
- Impact
- Aircraft
- Third Party Liability
Exclusions
Including but not limited to:
- War, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, riot, strike, lock-out, civil commotion
- Nuclear reaction, nuclear radiation or radioactive contamination
- Willful acts or willful negligence of the insured or his representatives
- Cessation of work whether of total or partial
Performance Bonds
A written guarantee from a third party guarantor (usually a bank or an insurance company) submitted to a principal (client or customer) by a contractor on winning the bid. A performance bond ensures payment of a sum (not exceeding a stated maximum) of money in case the contractor fails in the full performance of the contract.
Bid Bonds
A bid bond is a guarantee that shows proof to the project owner that the Contractor has the capability to take on and implement the project once the contractor is selected during the bidding process.
