Exclusions for hazardous activities and locationson
Insurance policies will often have a hazardous location and hazardous activities exclusion on their wordings. This is often missed by contractors and developers when tendering for new projects, leaving themselves and their employers exposed.
Hazardous locations and hazardous activities vary from insurer to insurer, which is why it is crucial at every change you make to your policy that you review your activities with your existing and/or new insurer.
Such exclusions often include work near or on any watercourse including docks, wharfs and harbours. This could include on or near transportation infrastructures. With demand for new housing still at a high, new residential projects are often deliberately placed near watercourses for their aesthetic appeal and near transportation infrastructure for its convenience. Depending upon these projects and the wording of the specific insurer could result in these not being covered.
Some exclusions could be in respect of traditional power stations and offshore properties, but with a demand for renewable energy and new power sources, consideration should be made as to whether your construction insurances cover you adequately for such locations.
Many insurers have more general exclusions in respect of height (often as low as 10m), depth (often as low as 1m, or a complete exclusion for underground works) timber frame (either excluded or limited), and heat work (either complete exclusion or excluding certain activities).
All of these exclusions can be overcome, if such activities are reviewed. The key is matching the right insurer and the right conditions to your annual activities. Or for project-specific Contractors All Risk Insurances, a bespoke arrangement can be placed to cover such exposures.
At Reich Construction, we have many years’ experience of reviewing such requirements, with a strong relationship with key insurers in the market, allowing us to place a policy which is right for you.
Contact us today for your annual and project-specific needs:
T: 0161 830 7556