Comprehensive Construction & Engineering Insurance for Your Projects

Construction insurance is not a single policy but a programme of linked cover: works, plant, liability, delay, defects and bonds. The programme is placed against the contract wording, and the contract wording drives the risk allocation between the parties. Understanding the mechanics is central to placement that responds correctly at claim stage.

Contract wording alignment (NEC, FIDIC, JBCC)

South African construction contracts most commonly use NEC, FIDIC or JBCC wordings. Each allocates insurance obligations differently between employer and contractor: who provides the works cover, who insures plant, who holds public liability, and how the parties’ interests are structured. Cover placed against the wrong contract profile creates gaps that surface only at claim stage.

Principal-controlled vs contractor-arranged

Large SA projects increasingly use a principal-controlled insurance programme, where the employer arranges cover for all parties on site — main contractor, subcontractors, consulting engineers and specialist trades. Smaller projects rely on the main contractor arranging cover and requiring subcontractors to hold their own liability policies. The choice affects premium, claims management and coordination.

Delay in Start-Up structuring

DSU cover pays anticipated revenue lost when a physical damage claim delays project completion. The insured amount is based on projected income during a defined indemnity period. DSU is central to revenue-generating projects — renewables, retail developments, industrial expansions — where financing and offtake contracts assume a completion date.

Design responsibility and professional indemnity

CAR cover responds to physical loss or damage to the works. It does not respond to claims that a contractor’s design, specification or advice was wrong. Contractors who take on design responsibility, including design-and-build work, may need professional indemnity for builders and contractors alongside the works cover.

Latent defects and post-completion cover

Once the works are handed over, the CAR policy typically expires. Latent defects cover addresses structural or workmanship defects that surface after handover, within a defined period. This is particularly relevant on large developments where financing or lease agreements require ongoing protection against defects that were not visible at practical completion.