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Construction Insurance

Construction insurance is a very important weapon one can have to secure everything concerning a construction project, whether it is for private or for commercial use. There are 2 types of construction insurance policy – single or specific project policy and the annual project policy.

Single project policy covers a one-off project while annual project policy covers various works that take place during the 12-month policy period. There are 2 options for annual policy insurance, the first is the so-called ‘run-off policy’ and the second is the ‘turnover policy’ or sometimes called ‘transfer or cut-off policy’.

What is Run-off Policy?
Also sometimes called ‘projects or contracts commencing policy’, it covers all projects that meet the characteristics stated in the schedule and begin during policy period until the construction and its defects accountability period is complete. All insurance policies are bound to have defects exclusion but the comprehending of what it covers is important.

What is Turnover Policy?
A turnover policy or cut-off policy covers all projects planned to be worked on during the policy period. Any projects completed within the 12-month policy period are followed by the insurance provided during the defects accountability period. Though, if the project isn’t finished within the allocated period, all proceeding projects will not be insured.

Brokers should investigate the expiring policy for the two insurance options and also review which cover applies. They must also be aware of the client’s current situation before picking them up. There are possibilities of conflict between the policies that the clients are on. If brokers do not completely understand the policy wording that was previously in place, a claim can take place and the client is not insured. 

There can be many factors and possible reasons why keeping up to date with policy wording can be hard these days. Some of these factors are the kinds of technology being released in the market today in a very fast pace of time. Another also is the threats to travel such as terrorism or natural disasters. Although these factors are being addressed in the basic form, there are still challenges on the entrepreneurial cover. Another thing to be aware about policies is the validity. Some policies aren’t necessarily outdated but they are plagiarized – meaning they become irrelevant quickly. For the best deals, you have to choose products that are new and unique.

If you are a resident in Australia and you need construction insurance, Allrisk Insurance would be the best company for you. We have insurance policies that are specially tailored for Australian contractors, builders, and business companies. Dial these numbers – 1300 255 747 – and talk to our insurance specialists for complete details about our products. 
  
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