The construction all-risk cover is available on building contracts risks, civil contract risks, contract works, contractors’ all risks, demolition all risks, erection all risks, works damage, plant all risk and plant hire.
The construction risk cover can be either an annual policy or for a specific period, which can be longer or shorter than 12 months. Whenever the period of insurance of an underlying policy is extended and an additional premium is charged in terms of the underlying policy, an additional premium in terms of the Sasria SOC Ltd cover must also be charged, using the same method of calculation.
When a contract is shorter than 12 months and is being extended for a period not more than 3 months and the contract value remains the same, an additional premium may not be charged for Sasria SOC Ltd, if there is no additional premium charged on the underlying policy.
However, if the extension exceeds three months or the value of the contract increases, an additional Sasria SOC Ltd premium must be charged for the extended period, regardless of whether the premium is charged on the underlying policy.
The premium rate is applied to the estimated turnover for the period in the case of annual underlying construction risk policies. In the case of specific contract policies, the premium rate is applied to the value of the contract plus all additional cover sums insured.
The construction risk cover also applies to mobile plant. A mobile plant registered for road use and utilised on public roads can be insured under the motor coupon. If a mobile plant is registered for road use, but will never be utilised on a public road, then it may be insured under the plant all risk coupon. Plant may be insured on a fee basis, declared / agreed value or market value.
Note: Under the construction risk, Sasria SOC Ltd has an annual limit of R500 million per any one contract. Where there are subcontractors involved in the contract, the aggregated limit increases to R550 million per insurance period.