Q: Describe various types of Insurances (Max one page)

A: Following are various type of insurances.

Type of Insurance Coverage

1.Worker’s Pays claimant (workers of the project) in case of injury, illness, disability, or
compensation death of employees resulting from work on the job.
2. General liability Protects the owners and the contractors from the financial consequences of
various risks, such as hazardous operations, or accidents during construction
and even after the work is completed. The insurance pays for a variety of
benefits, including legal defense, injuries to people, and damage to property. It
also covers third party loss or damage.
3. Builder’s risk Pays for damages and losses to a project that occurs while it is being built.
Protects a person's or organizations insurable interest in materials, fixtures
and/or equipment being used in the construction or renovation of a building or
structure to sustain physical loss or damage from a covered cause.
4. Contractor All Risk Covers any unforeseen and sudden physical loss or damage from any cause
(CAR) (other than those specifically excluded) to contract works or construction plant,
equipment and/or machinery (unless separately insured).
5. Excess liability An umbrella policy that pays for losses that exceed primary policy limits, such as
general liability, automobile liabilities, and employer’s liability on workers’
compensation.
6. Pollution liability Pays for environmental losses associated with accidental chemical spills and the
leakage or disbursement of dangerous vapors.
7. Design Pays for architects’ and engineers’ professional liability for errors and omissions.
professional liability This coverage is usually purchased by the architectural and engineering firms
but could be included under wrap-up insurance for a design-build project.
8. Design-build errors For companies working in the design-build arena, provides coverage for
& omissions contractor errors.
9. Railroad protective Liability insurance coverage for railroads, purchased by those who conduct
operations (construction) on or adjacent to railroad property.
10. Commercial Covers property from being damaged or destroyed by from: fire; lightening;
Property vandalism; hail; sinkholes; civil commotion; damage from an aircraft or vehicle;
sprinkler leakage; smoke; volcanic action; falling objects; accidental discharge of
water; or weight of ice, sleet or snow
11. Longshoremen/ Liability insurance similar to workers’ compensation that provides coverage for
maritime workers, including construction workers, on the water or those working over
water.
12. Automobile Pays for damage caused by the policy holder’s vehicles. Also pays medical costs
liability of persons injured in or by the vehicles. This insurance is typically not included in
wrap-up insurance because vehicles are operated outside the confines of the
project.
13. Tools and Pays when a contractor’s tools, equipments, field offices, or other property are
equipment destroyed, damaged, or stolen. This insurance is not included in wrap-up
insurance because these items are considered mobile and therefore difficult to
manage. In addition, the premium costs for these policies are not material and
would be difficult to isolate from bids.
14. Marine The Marine Insurance policy covers the loss or damage to property caused due
to: Natural disasters like cyclone, earthquake, lightning, etc. Man-made
disasters like theft, violence, and piracy of ships.

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