Construction Insurance and UK Construction Contracts
Page 176
CHAPTER 11
Property damage policies
Property damage policies
11.1 deals with the application of insurance obligations in property and construction documentation. However, this chapter deals more with the types and content of property damage policies. 11.2 For a very large percentage of construction projects there will be in place a project insurance policy gathering under one policy the property interests of a number of participants to the project. Such a policy is often described as a “project insurance”, sometimes as a “contractors all risks insurance”, sometimes as an “erection all risks insurance”. Other descriptions can be found. The expression “erection all risks insurance” tends to be used for insurance taken out in connection with process plant projects (e.g. an oil refinery or a chemical processing plant). 11.3 Whatever the description, what this chapter considers first are policies under which the material damage risks of a project are brought under the umbrella of one insurer. We take as the paradigm case contractors all risks (“CAR”) insurance. We then consider some of the principal risks that an insurer is typically required to insure under the JCT standard forms of contract.Contractors all risks insurance
11.4 Standard “all risks” insurance will have an insuring clause in the following or very similar terms:1The insurer will, subject to the terms contained herein or endorsed hereon, indemnify the Insured in respect of loss of or damage to the Insured Property whilst at the Insured Location in connection with the Business of the Principal Insured occurring during the Period of Insurance arising from any cause whatsoever except as hereinafter provided.