Construction and engineering insurance

Contract Works

Physical loss or damage to insured construction works and materials during the agreed project period, potentially including selected temporary works and associated reinstatement costs.

Illustrative example

A storm damages a partially completed building and materials stored at the construction site.

Check the wording

Existing structures, off-site storage and the handover date require specific attention; they are not universally included.

Read the detailed Contract Works guide

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Construction Liability

Cover section

Legal liability for third-party injury or property damage arising from declared construction activities, with associated defence costs where insured under the selected liability wording.

Illustrative example

Falling building materials damage a neighbouring property, prompting a claim against the contractor.

Check the wording

Rectifying your own defective work is not automatically covered simply because the defect produces a liability claim.

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Contractors Plant & Equipment

Physical loss or damage to construction machinery, tools and equipment used by contractors, including owned or hired items when accepted within the insured schedule.

Illustrative example

A stolen site generator must be replaced before the contractor can resume scheduled work.

Check the wording

Hired-in equipment, continuing hire charges and theft security requirements need explicit review before work begins.

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Erection All Risks

Physical loss or damage during installation and assembly of machinery or equipment, with testing, commissioning and liability protection depending on the agreed project wording.

Illustrative example

A newly installed production unit is damaged during a covered commissioning test before handover.

Check the wording

Testing periods and prototype equipment conditions can significantly restrict cover during the most technically demanding stages.

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Construction All Risks

Broad construction-stage protection for physical loss or damage to insured works, often combined with third-party liability, while retaining specified exclusions, limits and project conditions.

Illustrative example

A site fire damages unfinished works and sparks a separate claim from an adjoining owner.

Check the wording

All risks does not mean every loss; design defects and the defective component's replacement may be restricted.

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Advanced Loss of Profits

Extension

Selected financial losses when insured physical damage delays a project's planned commercial operation, typically protecting anticipated earnings or specified continuing financial commitments during the delay.

Illustrative example

Insured damage to a factory under construction postpones opening and delays its expected operating revenue.

Check the wording

Ordinary lateness, funding problems and contractor insolvency are not automatically covered without an applicable insured trigger.

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Delay in Start-Up

Extension

Specified income loss or financial obligations resulting when insured physical damage delays the start of an insured project, commonly overlapping with advanced loss of profits.

Illustrative example

A damaged imported turbine delays a power project's start and postpones expected electricity sales.

Check the wording

Confirm the damage trigger, scheduled start date, waiting period and maximum indemnity period before relying on protection.

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Latent Defects

Addresses specified post-completion building defects and resulting insured damage, depending on the building elements, technical requirements, cover period and defect or damage trigger in the wording.

Illustrative example

A concealed structural design defect causes serious cracking in an insured building after completion.

Check the wording

This is not a warranty for every fault; technical inspections, damage thresholds and excluded defects matter.

Read the detailed Latent Defects guide

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Owner Controlled Insurance Program

Programme structure

A project-owner-led structure coordinating selected insurance for the project and agreed participants, with the actual protection determined by its constituent policies and endorsements.

Illustrative example

A developer coordinates project insurance for eligible contractors working on the same major building project.

Check the wording

It is a programme structure, not a standalone coverage; participant eligibility and excluded activities require confirmation.

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Contractor Controlled Insurance Program

Programme structure

A contractor-led structure coordinating selected insurance for an agreed project or projects and enrolled participants, with scope established by the policies actually arranged.

Illustrative example

A principal contractor coordinates agreed project policies for participating subcontractors across a large construction development.

Check the wording

Do not assume all subcontractors or off-site work are included; enrolment and policy boundaries remain important.

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Civil Contractors Insurance

Programme structure

A tailored combination of covers for civil works businesses, potentially addressing contract works, mobile plant, equipment and legal liability arising from declared operations.

Illustrative example

A roadworks contractor faces both damaged machinery and a claim involving an underground service.

Check the wording

Underground services, vibration and weakening of support often require specific conditions or extensions under liability cover.

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