Page 334 - TCDB combined Book

Chapter 6 MANAGEMENT 313

Builders' Risk:

All projects should be covered by an All Risk Policy for the duration of the contracted
work. This type of policy will cover physical loss resulting from fire, storm, water or collapse and
should be a Broad Form Policy. Contractors' equipment, tools and rental items on-site or in transit
will not be covered and will require a separate Floater. The minimum amount of coverage should
be the total contract amount, taking into consideration any Insurance Coverage provided by the
Owner and significant changes in Contract Value during progress of the work.

On projects involving alterations and improvements to existing buildings and structures, it
is important to advise the Owner that your Insurance Coverage does not extend to the existing
property. Consideration should be given to a Joint Policy, covering the cost of your contract
work including the existing property. The premiums for these types of All Risk Policies are
normally based on the assessed risk and duration of the project.

Depending on the location of a particular project and the perceived risk you should
consider endorsements that will cover wind, flood and earthquake. Including the mortgagor and
owner as additional named insured is also a common request for this type of Insurance Coverage.

Boiler Insurance Policy:

This type of Policy is used to cover installed Pressure Vessels and Boilers. There is
coverage limits and also noted exclusions for this type of Policy and suggest a review of this
special insurance ensuring complete coverage for your project. There are numerous
endorsements to consider for this insurance and recommend regulatory inspections be carried out
on any installed items to ensure compliance with the Terms and Conditions of any Insurance
Policy coverage.