Construction

This insurance is intended for developers, principal contractors, subcontractors, designers, and supervisory bodies.

We recommend arranging the insurance before works begin, in order to avoid subsequent disputes with the insurer over the acceptance of a claim. The policy may be taken out by either the developer or the contractor. In line with regional practice, the policy consists of three sections: the first section covers material damage to the works themselves and surrounding property, the second section covers third-party liability, and the third section covers loss of profit (ALOP).

Major damage during the construction of a shopping centre could delay its opening and cause delays to contracts with tenants, with ALOP cover providing compensation for the lost profit. The contemporary challenges of the sector that we encounter in our work with clients are supply chain disruption and material shortages, labour shortages, unstable economic conditions and cash flow management, cyber threats (particularly in data centres, where cyber risk management does not keep pace with the rate of construction), and climate risks and the challenges of decarbonisation. There are also the risks of transition from the construction phase to the operational phase due to unclear handover, and limited surety capacity for large projects. For our clients we also arrange specialist solutions tailored to the individual project: Builders' Risk, Construction/Erection All Risks, Contractors' Equipment, General/Umbrella/Excess Liability, Construction Professional Liability, Wrap-Up programmes (OCIP/CCIP), Owners' Protective Professional Indemnity (OPPI), and Subcontractor Default Insurance. Construction and erection insurance protects all contracting parties throughout the entire project delivery process, and for complex insurance and reinsurance that requires experience, expertise, and international reach, we rely on our partnership with AON.