Project Principals expose themselves to a range of potential risks working on major development projects including cost blowouts, mistakes by a contractor or consultant and worker accidents. These can have a significant flow on effect to the Principal's financial position.
At Coverforce, our experienced insurance brokers are here to assist you with personalised risk advice and the placement of your Principal Controlled Insurance program.
What is Principal Controlled Insurance?
Principal Controlled Insurance is designed for large development and construction projects with heavy financial requirements. Unlike traditional Project Insurance which insures the contractor and consultants, this type of insurance program insures the Principal.
Do I need Principal Controlled Insurance?
Traditionally, Principals have made it a contractual requirement for contractors and consultants to carry Professional Indemnity insurance for the duration of the project. This often extends for a further 6 or 7 years after the project has finished.
Relying on this arrangement can cause significant problems for Principals, such as:
- Inaccurate description of the professional services being carried out,
- Inadequate cover – such as negligence only, rather than Civil Liability
- Exhaustion of the contractors aggregate limit under their annual policies
- High deductibles
- Unexpected exclusions such as property damage and/or injury
- Breach of contract
- Unreasonable conditions such as loss mitigation
Therefore, getting Principal Controlled Insurance gives the Principal full control over their insurance program.
What does this Insurance cover?
A Principal Controlled Insurance policy can protect you from a range of financial losses (including, but not limited to) those arising from errors in design, quantification and specification. This includes “Fit for Purpose” which is dependent on the way the project is delivered.
You can acquire this cover on a project basis to cover all project participants, which protects you against significant financial risk to the project.
Our insurance brokers can assist you with tailor made packages that include:
- Contract Works,
- Public Liability
- Delayed Start-Up
- Professional Indemnity
- Pollution Liability