CONTRACTOR’S ALL RISK (CAR)
During the course of execution of project relating to construction of building and civil engineering works, certain unforeseen accidents could occur resulting in considerable financial loss to the contract works, construction / or the principals arising from damage to the contract works, construction of plant and machinery as well as Third Party Claims. The Contractors All Risks (CAR) Insurance has been designed to protect the interests of the Contractors /Principal against such losses. CAR coverage provides protection for construction or contractor all risks and is used mainly for the movement of dirt and concrete building work. CAR is more suitable for civil works such as buildings, roads, bridges, and docks. The Contractors All Risk Insurance Policy offers the following section covers: 1. Public Liability 2. Lateral Support Liability
ERECTION ALL RISK
The Erection All Risk insurance provides coverage against any physical damages or losses during erection or installation of any plant, machinery, and equipment. In other words, it covers damages during erection of either a single machine or an entire plant or factory. It also covers damages observed till completion of testing of the installed machinery/plant. EAR coverage is applied to the use of installing machinery and equipment. EAR is more suitable for engineering facilities and other construction projects involving erections and installations. For example, EAR insurance policies provide coverage for the construction of power plants, gas processing facilities and others.
DISMANTLING, TRANSIT AND ERECTION (DTE)
Coverage is available on a per-contract basis for loss or damage to electrical and mechanical equipment during moving operations. This encompasses dismantling, transportation, positioning, lifting, installation, and assembly. The policy extends to cover equipment in transit, provided its value is included in the policy sum insured. Testing coverage is for new equipment only. The policy is annually renewable, requiring declaration of contract values. It covers physical loss or damage during dismantling, transit, and erection, with options for public liability, storage, and maintenance. Coverage can be tailored to operational needs.
PLANT ALL RISK
Plant All Risks Insurance is an insurance policy that covers mostly mobile plant and machinery items against unforeseen physical loss or damage that may arise from the occurrence of perils that are not specifically excluded from the cover. This type of cover will cover items such as earthmoving equipment, cranes, pumps, air compressors etc. The following sections of cover are available: • Material Damage – Own Plant • Fire, lightning and explosion • Theft and malicious damage • Storm and tempest • Hiring Costs • Legal liability and continuing hire charges (Hired-In Plant) • Site Liability • Third Party Liability for road licensed vehicles • Loss of or damage to construction plant and equipment from any cause whilst in storage, transit, on contract site and being use as a tool of trade. 1. New Replacement Value (“NRV”) 2. Market Value (“MV”) 3. Agreed Value (“AV”)
MACHINERY BREAKDOWN
Machinery breakdown insurance provides a security cover to the machines used by factories and industries. This insurance covers accidental breakdown and physical damage of the machinery, the cost of repairs or replacement of the damaged machine parts. The Machinery Breakdown cover can also be extended to loss of product (raw material in process) which was being processed when the machine broke down and Deterioration of Stock in cold storage, following breakdown of the refrigeration equipment.
ELECTRONIC EQUIPMENT
Electronic Equipment Insurance covers the physical loss or damage to computer and electronic data processing equipment and associated ancillary equipment arising from fire and allied perils, accidental damage, malicious damage, theft and machinery breakdown. This policy can also be extended to cover: • • Increased Cost of Working • • Reconstitution of Data • • Loss of or damage to Computer and Electronic Data Processing Equipment , IT installations, telephone exchanges, cell phone networks and associated ancillary equipment arising from Fire and Allied perils. Accidental Damage, Malicious Damage and Machinery Breakdown.
POLITICAL VIOLENCE AND TERRORISM
Terrorism and political violence ( PVT) insurance covers an individual or company against physical loss and damage, as well as business interruption costs, as a result of a terrorist act or acts of political violence such as riot, strike, civil commotion, revolution, war, civil war, rebellion, insurrection, sabotage, coup d’état and malicious damage, and consequential looting. It can occur as a stand-alone cover or as part of another policy such as Motor Vehicle insurance or Home Insurance commonly called a rider.
Why you need PVT?
Every so often, parts of the world are reminded of the threats posed to people, businesses and property by acts of violence motivated by political or terrorism forces. • Politically motivated attacks, acts of terrorism and other forms of unrest can cause great losses to businesses and individuals and loss of lives. • It is vital during such times to have a way to adequately protect assets, people, and plan for business continuity. • Apart from other key security prevention tactics, insurance remains a key tactic to manage the exposure.
