Key Considerations and Common Misconceptions in Construction Insurance

Core Value and Underwriting Strategy for Construction Insurance

Construction All Risks insurance covers material damage and third-party liability arising from natural disasters or accidents during construction. Adequate sum insured should be based on the project budget to ensure full coverage of reconstruction costs. Policyholders must carefully review exclusions to clearly define coverage limits and prevent claims disputes.

• Precisely define the scope of the subject matter of insurance
• Set deductible ratio appropriately
• Disclose the actual engineering geological conditions

Common pitfalls include failing to renew policies after construction delays, confusing the coverage scope of Construction All Risks (CAR) with Employer's Liability insurance, and underestimating third-party bodily injury limits. These oversights can leave critical risks uncovered, leading to financial losses.