Construction > Builders Risk


Builders Risk 


Risk of property damage on a construction site is a significant concern for project owners, developers, contractors and subcontractors. With ENCON’s Builders Risk insurance, projects are covered for course of construction, as well as for all associated property claims.

Eligibility

Coverage is available for the following types of projects:

  • Most building project types of fire resistive, non-combustible or masonry construction, provided the project value exceeds $5,000,000
  • Civil works projects, regardless of project value, involving construction of bridges, dams, sewers and watermains, etc.

Coverage Details

  • Policy Form – “All Risk” policy, conforms with CCDC 2 insurance requirements
  • Policy Period – Usually for the full duration of the project
  • Capacity – Projects valued up to $100,000,000
  • “All Perils” deductible – Starting at $10,000 (higher deductibles apply to major perils such as flood, water damage and earthquake)
  • Minimum premium – $5,000 per policy
  • Territory – Projects in Canada only

Policy Features

  • Coverage is “all risk” in scope, providing a broad and uniform scope of coverage which can be tailored to the particular project, insuring all contractors and subcontractors, architects, engineers and other project participants having an insurable interest in the project.
  • Provided its value is included in the amount insured, it is usually possible to add coverage for additional property which does not form part of the contract works, e.g. coverage for an existing building in the case of renovation or retrofit projects
  • Coverage is usually provided for property in transit or situated at other locations off-site

Additional Coverages Available

  • Perils such as earthquake and flood
  • Soft costs not directly related to construction (financial costs, additional interest expenses, leasing and marketing expenses, legal and accounting expenses, and miscellaneous carrying costs)
  • Delayed opening loss of income, should a delay in completion result in loss of revenue for the project owner
  • Testing
  • Equipment Breakdown Insurance
  • Bylaws
  • Expediting Expenses

After-hours Emergency Claims Service

Submission Requirements
  • A completed ENCON Builders Risk and Wrap-Up Liability insurance application form
  • Site plan detailing neighbouring exposures
  • Breakdown of values
  • Construction schedule
  • Geotechnical report
  • Details (age, construction, occupancy, value) of any existing property, in the case of renovation or retrofit projects
  • All applications must be submitted to ENCON through a licensed insurance broker