- 5 Apr 2022: Punctuations added.
- 2 Feb 2021: Typo correction.
- 24 Dec 2014: Moved from wiki.
- Joint names.
- Third parties.
- Cross liability.
- Waiver of subrogation.
- Excess / deductible.
- Surety / bondsman.
- Contractors' all risks and third party liability insurances:
- Materials damage
- Third party liability.
- Insurances of construction plant, temporary buildings and vehicles.
- Insurances prior to delivery to site.
- Employees' compensation insurances.
- Exclusion of self-employed persons and sole proprietors.
- Professional liability insurances.
Contractor Controlled Insurance Programme (CCIP)
- Insurance procured by the Contractor.
- This is the usual approach.
- Contractor taking up the administrative role of procuring the insurance.
- Contractor may have an established department or experienced staff to do it.
- Contractor may have long established insurance agents or brokers to do it.
- Contractor in the best position to manage his own site safety / risks.
- Contractor's good track records may lead to lower insurance premium.
- The lower insurance premium would be reflected in the Contractor's tender price.
- A desire to keep the premium low for the future would encourage keeping good track records for now.
Owner Controlled Insurance Programme (OCIP)
- Insurance procured by the Owner (Employer).
- Mainly for mega projects involving a number of contracts interfacing with one another.
- Best to avoid overlaps and gaps, split of responsibilities and mutual claims within the same mega project.
- Also suitable when the Employer will have a number of projects coming up over the years.
- Employer in better control in areas such as premium, insurance security and insurance coverage.
- The limit and scope of indemnity may be higher and bigger than those could be procured by smaller contracts.
- Excesses may be too high for smaller contractors within the same mega project.
- Employer taking up the administrative role of procuring the insurance.
- Employer may not have an established department or experienced staff to do it.
- Employer may need to employ insurance consultants to give advice and do it.
- It may require a long lead time from deciding to employ the insurance consultant to procurement of insurance.
- Surety bonds / Performance bonds:
- Validity period.
- Tender / bid bonds.
- Advance payment bonds.
- Retention bonds.
- Payment guarantee bonds.
- Joint venture guarantees.
- Parent company guarantees.
- Form of Warranty / Collateral Agreement by Nominated Sub-Contractor / Supplier.
- Quality warranties:
- Glass breakage.
(Typo in item 1 corrected, 2 Feb 2021)
See also Vetting Insurances, Bonds and Warranties.