Why an Insurance Policy Matters in Construction Projects

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Introduction Construction insurance is an important policy to have if you own, run or manage a construction site. Construction insurance provides safeguards for you as an employer against your construction workers being injured on site. Construction insurance does not exempt you from maintaining a safe workplace. Usually, construction insurance policies only pay out if a strict set of health and safety guidelines are followed.

A Recently Completed 3- Storey Flat Mombasa

Contractors and Professionals A public liability insurance policy carried by a contractor or a professional liability insurance policy carried by a design professional generally indemnifies the insured if it incurs liability to a third party. Insurers in fixing their rates must be able to predict their losses. The professional liability insurer assumes its liability will be based on the normal professional activity performed by its insured The obvious therefore is that if you are dealing with quacks, there are no Professional Standards to benchmark any risk and you cannot bring them to account. Quacks do not have what we would call normal professional activity.

Download "Understanding Ujenzibora " Requirements to Insure In Kenya, the Agreement and Conditions of Contract for Building Works (Published by the Joint Building Council/ Architectural Association of Kenya), provides for the requirement to insure as follows: a) Liability/Insurance Against Injury to Persons and Property_ Contractor shall be liable for and shall indemnify the Employer in respect of personal injury to or death of any person arising out of or in the course or caused by the carrying out of the works (with an exception of the negligence of the Employer) b) Insurance of the Works_(Contractors Liability) In the erection of new buildings, the Contractor may be required to insure the works against loss and damage by fire, earthquake, fire following earthquake, lightning, explosion, storm, tempest, flood, bursting or overflowing of water tanks, apparatus or pipes, aircraft and other aerial devices or articles dropped therefrom, riot and civil commotion etc. Normally, the insurance covers all works executed and all unfixed materials and goods delivered to / adjacent to the Works and intended to be incorporated into the works. c) Insurance of the Works_ (Employers Liability) The contract may also require the Employer to insure the works almost for the same reasons as in (b) above. Upon request, in such instances, the Employer should be able to produce the policies/ policy for inspection by the Contractor. d) Insurance of Works (Works of Alteration, repairs or extensions) The Employer takes the responsibility but Contractor may, in the name of and on behalf of the Employer insure the existing structures, the Works and unfixed materials against damage, loss or contingencies.