This insurance is usually acquired by a Construction Company or the Principal engaging in the service of Construction Company. The policy contains two sections. The first section covers accidental damage to the contract works and raw materials including finished works and work-in-progress. If the works sustain accidental damage caused by fire, flooding, etc, the Insurance Company will compensate the client by repairing or reinstating the damaged parts.
Section 2 of the policy protects the Construction Company and the Principal’s legal liability against death or bodily injury or property damage to third party due to negligence while performing the contract work.
The Insured contract work can be large-scale projects like construction of high-rise buildings, tunnels, highways or small-scale jobs such as household, shop or office renovation.