SABRA, Abdul Rahman

CONTRACTS MANAGER

ROAD #4 GHANTOOT BUILDING FIRST FLOOR

Phone: +971 2 6414151 Fax: +971 2 6412010 Mobile: +971 50 6414151

ar.sabra@ghantootgroup.ae ar.sabra@me.com www.ghantootgroup.com

GHANTOOT TRANSPORT & GENERAL CONTRACTING EST. BUILDING DIV

INSURANCE IN CONSTRUCTION PROJECTS

Construction insurances are required on every single construction project. Construction insurances provides coverage for material, risks, natural disasters, employees and even defaults in design. However, the insurance industry along with the construction industry are always looking to comprehend and provide the latest coverage on every single and unique situation. Here you will find the most common insurances used in the construction industry.

A. INSURANCE UNDER FIDIC CLAUSES

INSURANCES Clause 15 15.1 Subcontractors Obligation to Insure 15.2 Contractors Obligation to Insure; Subcontract Works at Subcontractors Risk 15.3 Evidence of Insurance; Remedy on Failure to Insure

B. CATEGORIES
There are two main categories of insurance. The first relates to damage occurring to property or the works themselves during construction and is referred to as property or works insur ance policies. This category covers the property, contract work, materials, equipment and machinery connected with it. The second category is liability insurance dealing with claims by third parties for personal injury and property damage. The insurance market has then generated a range of discreet insurance products dealing with sub-divisions of these categories, and the insurance policies available in the market place may cover one or more of the sub-categories and even cover both main categories identified in table herein. The categories of insurance table set out in Table below identify the main insurance sub-divisions relating to construction work:

Reference: 8A CON.

2013

Property Insurance Or works insurance covers the property, damage to the contract works, materials, equipment and machinery connected with the works. DEVELOPER OWNER GOVERNMENT ENTITY 1. Covers any part of the works taken over 2. Latent defects 3. Loss of profit /rent

Liability Insurance Covers claims by third parties for personal injury and damage to their property.

1. employers liability 2. public liability for a limit in excess of that required by the contract, 3. or limit not indemnified by contractor 4. public liability for non- negligence 1. employers liability 2. public liability 3. professional indemnity 1. 2. 3. 4. Employers liability public liability public liability for non-negligence professional indemnity for design undertaken by contractor 5. motor insurance 6. marine insurance

DESIGNER

CONTRACTOR

1. contractors all risk CAR

Reference: 8A CON.

2013