Construction insurance

Given the unique risks associated with construction, the industry requires its own specialized insurance product. Construction insurance cover construction companies for perils associated with building including cover for the materials used in the construction, the unfinished structures and liability.

That is, the project is covered from raw materials to completion, including materials in transit and loss of materials in floods and other natural disasters, while the company is protected from any claims for damages from builders and third-parties under construction liability cover. (The risk of personal injury for construction companies is higher than that of small businesses and corporates, which means that many business insurance policies won’t cover them. A specialized policy is thus required.)

Theft of materials is particularly common in South Africa, which means that such a risk must be specially underwritten. As a result of this, and other perils associated with building, the cost of the premiums is higher than small business insurance policies, but it comprehensively covers the risks.