This policy covers loss of or damage to the contract works, subject to specific exceptions. These exceptions are in respect of the works together with the materials and plant brought onto the contract site, and legal liability incurred by the Insured in respect of Third Party property damage and/or bodily injury arising from,or in connection with the works.

This type of insurance is usually issued under joint names – the Contractor and the Principal.

The Period of Insurance is for the duration of the contract works together with a maintenance period. The maintenance period cover is only in respect to loss or damage to the works that may arise in the course of the contractor fulfilling his obligations. When works are completed and handed over, the coverage ceases, except for the maintenance period.

Works insured may include:

• Construction of a building (Private dwelling or commercial)
• Renovation and/or extension of existing building
• Civil Works (e.g. Construction of roads and bridges)

Primary perils covered are:

• Fire
• Hurricane and storm
• Earthquake
• Flood
• Subsidence and collapse
• Theft

Beacon’s underwriting consideration(s): Full details of the contract including its value, the contractor’s experience,the duration, and the contours of the area (hilly or flat, prone to hurricane and wind storm etc). There is no refund on this policy if the project is completed before time but if an extension is required an additional premium is charged. A proposal form must be completed and the policy is subject to an excess.