What is Construction Insurance?
Construction Insurance is commonly required in government and corporate sector funded projects. It’s primarily a policy to cover in-progress construction works you are involved in from loss or damage but can also be extended to include many other project variables, such as project delays or material inflationary increases.
What does Construction Insurance cover?
Construction Insurance may cover you for circumstances such as theft or malicious damage, but may also cover storm damage, ground subsidence, rectification work from defective materials, project delays, damage to plant equipment (hired or owned) and site offices.
Construction Insurance example
You’re a pool building contractor currently digging on a job site. The weather has closed in and the job has come to a halt giving your employees an early end to their working week. You’ve decided to store the materials for this project in a secure shipping container onsite.
You return to site on Monday, the weather has cleared up and conditions are perfect to resume construction, but you discover your shipping container tampered with. Upon closer inspection your shipping container has been forcibly opened and approximately $15,000 worth of building materials are stolen.
In this instance you are thankful for your Construction Insurance Policy as it covered you against the theft of the material.