Construction - Related Services
Wrap Ups
Controlled Insurance Programs (CIP), more commonly known as “
Wrap-Up,”
are an excellent way to control insurance and claims costs on large, broad-coverage construction projects. See our Wrap Up page for more information.
Specialist Construction Risks
Our team of construction experts are able to arrange cover for the following specialist risks:
Construction Risks
Insurance is affected in the names of the Consortium, all contractors and subcontractors. It covers the works, temporary works, materials and temporary buildings for the period of the construction or erection against all risks, which are normally and customarily insurable. The sum insured in respect of the Construction All Risks section should not be less than the Construction Contract’s value or whatever amount may be required by the Consortium or its Lenders.
The Construction Contracts should require the Contractor to effect all other insurance directly applicable to the Project including employer’s liability insurance, contractors plant and equipment, motor third party insurance, marine vessels and aircraft liability insurance where appropriate and insurance covering works being undertaken at the plants and factories of the contractor and its subcontractors and suppliers.
Consequential Loss/Delay in Completion Insurance (Construction all Risks)
This insurance should be affected in the name of the Consortium to cover interest, additional fees and specified standing charges (not including capital repayment) incurred as a result of loss or damage indemnifiable under the Construction All Risks insurance described above. Consideration will need to be given to the maximum possible delay and the appropriate Indemnity Period (the period of delay to be insured). If Lenders require a broader scope of cover, this can usually be accommodated within the insurance market capacity constraints.
Assignment of Insurance
We would expect that the Lenders will require the Consortium’s rights and interest in those insurances described as the Consortium’s Insurance will be assigned to the Lenders. In addition, claims above a reasonable threshold amount will be payable to the Security Agent but applied to the repair or reinstatement of the works. In the event of default under the loan agreements the Lenders will normally expect any outstanding claim payments to be applied towards the discharge of the indebtedness.