The Contractors’ All Risks Insurance consists of two parts. The proposer can purchase both cover at the same time or with section 2 cover only (namely third party liability cover). On the other hand, the proposer should also purchase employees’ compensation insurance as well.
Section 1 – Material Damage
This section provides “All Risks” cover for loss of or damage to your contract works or material caused by fire, water, burglary or explosion during the construction period. The covered items include flooring, tiles, wallpaper and other related decoration materials.
Section 2 – Third Party Liability
This section covers the bodily injury or damage to physical property arising out of the performance of the contract works to third party for which the proposer may be legally liable
Employees’ Compensation Insurance
This section covers the proposer agianst the compensation expenses to the employee who is injured or death arising out of and on the course of employment.
The limit of indemnity: HKD 200 Million
However, when the scale of the contract is getting larger, there may be different contractors in the construction contract which the standard employees’ compensation insurance may not fit in.
There are a few extensions to be endorsed by the insurer so that the insurance requirement can be met.
W32 not indemnify for work at a height exceeding 9 meters (30 feet) above ground or floor level
W204 extend to indemnify against liability to employees in the employ of sub-contractors
W348 Witnessing Clause – extend to cover employees in the immediate employ of parties jointly described as the insured in the schedule
W338 extend to cover the liability of the principal to employees of the insured
Points to note for application or quotation:
Quotation of the contract (including job detail, whether external wall work is included and whether scaffolding is used)*
Building Age (Not exceeding 40 years normally)
Third party liability limit (5 Million, 10 Million or 20 Million)
Full name and address of the contractors
Full name of the principal (personal or company)
Management Company (Extend cover for third party liability is requested by some of the management company)
* erection or dismantle of the scaffolding is excluded