CAR exclusions

[jensen]

Hi

On page 55 of chapter 3, there is a list of possible exclusions from a construction all-risks policy. Any idea what sort of policy covers the second and the third bullet?

The second bullet reads, 'damage to work-in-progress resulting from faulty workmanship and

Third bullet reads, 'damage to any property which existed on site prior to the work commencing'.

Thanks!

 

[Ian Senator]

Sounds to me like the second bullet is more of a professional indemnity coverage.

The third sounds like it wouldn't be covered at all (even by other policies) as it's a known "pre-existing condition" - there's no uncertainty, so it's likely to be uninsured and would have been factored into the price of the land in the first place.

 

[jensen]

Thanks Ian

So, a professional indemnity covers construction work quality?

On the third point, I misread the bullet as "damage to any existing property as a result of the work commencing." I guess this case should be covered under a public liability policy?

 

[Ian Senator]

Certainly most professions would want some sort of cover in case they make a mess of things - ok, it's not the normal profession I'd think of (I usually think of doctors, actuaries, etc), but I'm guessing they'd have some sort of cover - whether it's called professional indemnity or public liability is not really important.

Yes, I'd tend to call that last one public liability, but again, the name doesn't really matter, it's the benefits that are important.

All the best
Ian