“why and what of contractor’s all...contractor's all risks (projects works) insurance...
TRANSCRIPT
“Why and What of Contractor’s All
Risks Insurances"
AN EIMS PRESENTATION
Cas Hansa
2011
• “A 'thumbnail' view of the scope of a typical Contractor's All Risks (projects works) insurance policy (via a gallery of photos).
• A 'tour' of the Eskom Insurance internet/website - a knowledge centre - of the project-works insurance programmes for Dx, Tx and Gx.
• Necessary steps to follow in the event of loss or damage experiences on site or with shipment of goods/materials.
Synopsis
Introduction to Contractor’s All
Risk (CAR) Insurance Source: The Council on Tall Buildings and Urban Habitat
Projects Insurable under a
Contractor’s All Risk Policy
Bridges (storm event)
Projects Insurable under a
Contractor’s All Risk Policy
Tunnels (flood, collapse?)
Projects Insurable under
Contractors’ All Risk Policy
Pipelines (dewater; debris removal)
Projects Insurable under a
Contractor’s All Risk Policy
Paper Mill (test & commission right at the end)
www.dcsc.tudelft.nl/.../paper-mill-a1.jpg
Projects Insurable under a
Contractor’s All Risk Policy
Wind Turbines (collapse; mechanical; lightning)
www.dcsc.tudelft.nl/.../paper-mill-a1.jpg
Projects Insurable under a
Contractor’s All Risk Policy
Semiconductor Plants (workmanship; fires?)
Source: Samsung Electronics Co., South Korea
Projects Insurable under a
Contractor’s All Risk Policy
Gas Turbine (dropping; blade damage?)
Source: Siemens.com
Projects Insurable under a
Contractor’s All Risk Policy
Complete Thermal Power Plants
Projects Insurable under a
Contractor’s All Risk Policy
Chemical Plants (explosions)
Exposures
Contractor accidentally burst
Municipal (3rd Party) water main
Accidental Damage to the
Works and to Third Party
Property (the Municipal
main/pipe and the
neighbour’s property
Exposures
Third Party Liability damage to
Building and Boundary Wall
3rd Party
Church
Premises
damaged
Contractor’s
Equipment
New
Shopping
Complex
works area
Exposures
Concrete spillage damage to
(Third Party Property)
Exposures
Concrete spillage damage to
Third Party Property
Exposures
Consequential Loss vs a TPL
Deterioration of Stock Loss
Note: The
(CAR) Works
policy does
NOT cover
consequential
loss such as
loss of profits,
penalties, time
delays, loss of
income, etc.
However, if
‘legally liable’
the TPL
Section of the
CAR Policy
will respond
to loss or
damage
caused to
Third Party
Property, eg
negligent,
accidental
damage to a
Power Cable
Mr Noah, don’t you think the prophesies of a
global climate change are a bit exaggerated?
Exposures: ‘Acts of God’
Exposures
‘SASRIA’: Strike, Riot, Civil Commotion and Terrorism
A Local Community damaged a sports facility being built.
Indications were they were unhappy with the ‘low cost’ structures
built versus the ‘high standard’ promises made to them.
Importance of social compacts being well publicised and fully
approved by all key community members!
Exposures
Theft of Materials (especially copper!)
Exposures
Theft of Materials
Exposures
Fire Damage to Equipment
[or SASRIA damage?]
Equipment: The responsibility of the
Contractor-Owner. These items must be
insured so that in the event of loss/damage
they can be urgently repaired or replaced.
Projects Insurable under a
Contractor’s All Risk Policy
Works; Surrounding Property; Employer’s
Property; Third Party Liability; Equipment.
Internet Repository
http://www.eskom.co.za/c/101/insurance-policies-procedures/
Policies and Procedures:
[Generally Tx Projects < than R500million, and
Gx Projects < than R350million]
Format A Project Works (Annual Contractor's All Risks)
Master Insurance Policy
SASRIA Master Policy
Format A Marine Insurance Policy
Marine Policies and Procedures
Format A Works Insurances Guidance Schedule
Internet Repository Cont’d.
http://www.eskom.co.za/c/101/insurance-policies-procedures/
Similarly, Policies and Procedures:
[For any contract related to the Projects Listed for
the so-called ‘Floater’ Insurance Programme]
Similarly, Policies and Procedures:
[Generally all Dx Projects < than R500million]
Similarly, Policies and
Procedures. [Contact EIMS for details]
Internet Repository Cont’d.
http://www.eskom.co.za/c/101/insurance-policies-procedures/
Claims Handling Policies and Procedures:
General Claims-Handling Flowchart
Marine-Specific Claims Handling Procedures
Works Damage Claim Form
Third Party Liability Claim Form
SASRIA Claim Form
Internet Repository Cont’d.
http://www.eskom.co.za/c/101/insurance-policies-procedures/
Professional Services Contract Guidance Notes
Contract Works Engineering Insurance Training Manual
Marine Insurance Training Manual
General Insurance Guidance Notes
Eskom Insurance Management Services (EIMS) Contact
Details
Internet Repository Cont’d. Claims Handling Process Chart
JOH-ESK002-20050922-JvW-P2
29
Thank
You