Managing a construction project involves navigating numerous risks that could impact timelines, blow out budgets, and effect the overall success of the development. Without proper risk management, these can have a significant flow on effect to a project principal's financial position too.
Principal Controlled Insurance is designed for large development and construction projects with heavy financial requirements. Unlike traditional Project Insurance which insures the contractor and consultants, this type of insurance program insures the Principal.
What is Principal Controlled Insurance?
Principal Controlled Insurance is designed to safeguard project principals from a variety of financial risks associated with construction projects. These can include losses arising from errors in design, quantification, and specification, as well as risks tied to “Fit for Purpose” obligations depending on the project delivery method.
This coverage is typically arranged on a project basis, offering protection for all participants involved. By consolidating coverage under one policy, Principal Controlled Insurance helps mitigate significant financial risks to the project and ensures a streamlined approach to managing liabilities.
Tailored packages can include key coverage options such as Contract Works, Public Liability, Delayed Start-Up, Professional Indemnity, and Pollution Liability.
Do I need Principal Controlled Insurance?
Traditionally, Principals have made it a contractual requirement for contractors and consultants to carry Professional Indemnity insurance for the duration of the project. This often extends for a further 6 or 7 years after the project has finished.
Relying on this arrangement can cause significant problems for Principals, such as:
- Inaccurate description of the professional services being carried out,
- Inadequate cover – such as negligence only, rather than Civil Liability
- Exhaustion of the contractors aggregate limit under their annual policies
- High deductibles
- Unexpected exclusions such as property damage and/or injury
- Breach of contract
- Unreasonable conditions such as loss mitigation
Therefore, getting Principal Controlled Insurance gives the Principal full control over their insurance program.
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How Coverforce can help
At Coverforce, our expert team of insurance brokers will take the time to assess your individual requirements and exposures and deliver a comprehensive insurance solution that is tailored to your specific needs and budget.
For more information or to speak to one of our brokers about arranging cover, please contact us.
Alternatively, you can simply fill out a Principal Controlled Insurance Quote form below and one of our insurance brokers will get in touch with you within one business day.
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