Plant All Risk (PAR) insurance covers the plant and machinery used by a contractor to facilitate the execution of a contract. Be it contractor all risk or an erection all risk project. In most cases, these plants work under extreme environmental conditions of e.g. dust, hard terrain, slippery or wet conditions etc. and are therefore exposed to severe wear and tear as well as highly hazardous working conditions.
The policy is suitable for all industries where the need for compensation on account of defective product may arise. The policy pays for damages that the insured is legally liable to pay in consequence of accidental death/injury or disease to third party property due to any defect in the product manufactured. Export to other countries can also be covered provided domestic sales are also covered.
Professional indemnity is issued to indemnify professionals against legal liabilities or losses arising from claims over breach of duty in the course of the execution of insured business. This form of policy is suitable for professionals such as engineers, architects, doctors, pharmacist, etc.
This is one of the main forms of construction insurance that has been developed to meet the changing needs of the construction industry. When new buildings or civil engineering projects such as roads or bridges are being constructed, a great deal of money is invested before the work is finished. The essence of the cover is to bridge the gap when the building or bridge sustain severe damage and to prevent such loss or damage from prolonging the construction the schedule thereby delaying the eventual completion date.
This is the insurance cover provided for the construction/erection of machinery, plant & steel structures involving very little civil engineering works. There is a seeming similarity between the contractors All risk (CAR) and the erection all risks (EAR) but it worthy of note that they are not similar. While the CAR provides cover for civil works and mostly building needed to house or support the expensive machinery& equipment, the EAR covers the erection.