What does a typical Modular Products Insurance policy include?
Below are examples of the more common specialist insurances incorporated into an integrated project insurance solution:
Advanced Loss of Profits Insurance for construction projects
Advanced loss of profits insurance provides cover for the property developer, or project funder, should the project over-run and cause financial loss.
This policy is specifically important for any large greenfield projects where delay in project completion could have a substantial impact on the expected income of the property owner.
Public Liability Insurance for construction projects
Public Liability Insurance is a core requirement for businesses. It protects you for your actions whilst at work and covers you for any damages that a member of the public may be awarded, as a result of injury, or damage to their property.
For example, if you are working at a project and cause accidental damage to any third party property, your public liability insurance will cover the compensation payments as well as any legal expenses.
Contract Works/Contractors All Risks Insurance for construction projects
This insurance provides ‘all risks’ property insurance on the actual ‘works’ being erected from the start of the project until final completion date. It can also provide cover for materials stored both on and off-site for use on the project. It can also incorporate some plant cover for both owned and hired-in plant. Contractors All Risks Policies can be arranged on a specific project basis and as part of an integrated project insurance. There may be a specialist project insurance form of contract conditions to consider when placing this cover.
For example, it provides cover if the project is partially erected and suffers major fire damage and also, if any materials or plant is stolen from site.
Latent Defects Insurance/Building Warranties for construction projects
Once the project is completed, this insurance will provide an insurance backed structural warranty for the complete project to ensure the new owner has insurance protection against inherent or latent defect to the property. This cover can be placed for up to 15 years for the benefit of the new, or any potential future owners over the total cover period.
For example, this insurance will provide cover if an inherent, or latent, structural defect is discovered 5 yrs after the property has been completed.
Depending on the policy an integrated project insurance solution may also include:
- Professional Indemnity Insurance for the design team
- Pollution Liability Insurance/Environmental Impairment Liability Insurance
- Specialist Engineering/Plant Insurance
- Directors & Officers Insurance including entity cover
- Insurance Backed Warranties