Understanding design risk exclusions in Contract Works insurance
Building projects are full of uncertainties – weather events, supply delays and the complexity of coordinating multiple trades can all lead to loss or damage. Contract works insurance (often called contractors’ all risk insurance) helps protect you against the cost of accidental damage to a project under construction. These policies are usually issued jointly in the names of the contractor and the client and cover unforeseen loss or damage to building works and equipment during the construction period. Contract works insurance will pay to repair or reinstate the works if they are accidentally destroyed or damaged before completion and typically operates on an “all risks” basis.