Concept: To provide necessary financial protection in the Owners &/or the Contractors, executing a "project", if such a project should require repair, replacement or reinstatement, as a result of it being subject to a sudden and unforeseen physical loss or damage during its execution &/or maintenance.
The Scope of Cover: The policy indemnifies the "Insured" named in the Policy, for monetary losses, suffered by the insured as a result of loss or material damage to the insured, arising from every risk not specifically excluded. The Policy also provides indemnity towards Third Party Claims (for Bodily injury or Property Damage) up to the Limit chosen and specified under Section II of the Policy.
Interests Covered: "Contract Works" (which would include all costs of materials to be incorporated therein), all temporary and permanent works to be executed in performance of the "project" including such associated property belonging to the Owners (Principals Existing Property-PEP); Contractors Plant, Equipment and Machinery, at the Project Site are also coverable. Reasonable costs for "Debris Removal", "Architects/Consultants Fees", and "Air freight", "Overtime and Night works" following an "accident", can be covered.
Premium Rating: Rate per thousand on total contract value is charged depending on the nature and type of contractual works, extent and period of coverage, deductible agreed, claims experience of contractor, method of operation, conditions at the work site, type of equipment.
War or Warlike Operations
Willful negligence or willful acts
Nuclear reaction, radiation or contamination
Consequential losses of any kind.
Losses due to delays, fines and penalties
Loss or damage to Construction Plant/Equipment and Machinery due to Electrical or Mechanical Breakdown etc.
Sabotage & Terrorism exclusion.