The short answer
Describe the construction project and check damage to the works, the cost of rectifying a defect, delays or penalties and existing property separately. Exclusions, extensions and cover dates depend on the contract: "all risks" is not an absolute guarantee.
Describing what will be built
- Nature and value of the works, phases and timetable.
- Contractors, appointed professionals and responsibilities to coordinate.
- Existing property, installations and neighbouring property affected.
- Site constraints and planned protective measures.
Damage to the works or rectification of the defect?
A workmanship defect and the damage it may cause are not a single insurance issue. Ask how the policy distinguishes repairing damage to the works from the cost of rectifying the defect itself. Infer neither a total exclusion nor automatic cover from this distinction.
Delays, penalties and existing property
- Are the financial consequences of a delay insured or excluded? Are contractual penalties subject to a specific provision?
- Are existing buildings or installations included in the cover, or do they require an extension?
- Which sums insured, excesses, limits and protective measures apply to each insured item?
Reading an example without generalising
AXA's business insurance presentation and its construction general terms and conditions (GTC), edition 10.2021, provide an example of scope and terms to examine. They do not constitute a universal list of exclusions. AXA is cited as a contractual source, not as a selected partner or recommended insurer.
Obtain written confirmation of the clauses and extensions in the policy proposed for your project, distinguishing insurance of the works from the liabilities of the parties involved.
Checking the start, end and changes
Check the events and dates that trigger and end cover: commencement, phases, acceptance (handover) or commissioning, depending on the contract. If the timetable, value or scope changes, check the necessary notifications and adjustments before assuming that cover has been extended.
Retain descriptions, plans, correspondence and dated photographs useful for monitoring the project. Identify in advance who reports damage and gathers the supporting documents.