Does your homeowner’s insurance cover domestic workers’ injuries?
July 26, 2021
Are you insured against monkey business?
August 23, 2021
Protection against delays due to riots, looting and more.
You know that there are many risks associated with running a construction company. After civil unrest wreaked havoc in South Africa in June and July this year, you may be asking yourself: “What would happen if we should have to temporarily close our construction sites because of civil commotion, public disorder, rioting, looting, labour disturbances, strikes, a lockout – or even an act of terrorism?”
Have you planned for business interruptions of this kind? How will you manage the regular costs of paying yourself, your staff or for the plant that you have hired for the job? How will you pay expenses like medical aids or regular services accounts? Avoid a temporary closure turning into permanent one – or even bankruptcy – with SASRIA’s business interruption insurance.
The South African Special Risk Insurance Association (SASRIA SOC Ltd) is a state-owned company. It is also the only short-term insurer that provides this type of special risk cover through their network of agent companies and brokers. Well capitalised, at the time of writing SASRIA boasts a capital adequacy ratio of more than three times and have adequate reinsurance programmes with A-rated reinsurers.
The SASRIA Construction Business Interruption ‘Project Delay’ policy is a stand-alone product with its own terms and conditions. It covers you against financial losses due to the interruption of or interference with your services as a construction business due to specific special risks. As well as losses, the policy will also cover necessary and reasonable expenses, called standing charges, which you may claim for should instances associated with defined special risks cause delays to projects.
This policy allows you to specify which standing charges in the schedule you want to be covered during the indemnity period. These include regular, fixed business expenses including, but not limited to, directors’ fees and wages; medical schemes and pensions; interest on loans and bank overdrafts; rent; rates and taxes; rentals and subscriptions; utilities like telephone accounts; and other regular expenses. You must have a contracts works policy in place with SASRIA to successfully claim for these standing charges.
Cover for ‘increase in cost of working’ can also be added. This cover may be used to fund extra security guards; the temporary employment of additional workers; overtime payment; and the hire of plant or equipment. Where the plant rental agreement stipulates that the insured (main contractor) must insure the property and/or be responsible for it at an agreed value, this will be the insured amount reflected on the schedule.
At an additional premium, the main contractor may, as the insured, also insure subcontractors under the project delay policy up to a maximum of R50 million.
Please contact us for advice and assistance with securing your SASRIA contracts works and project delay policies. We will work with you to ensure that your company, projects and most valuable asset – your workers – are protected against special risks.
CivilSure provides niche risk solutions to the construction and civils industry. We pride ourselves on delivering world class customer-centric services and specialist advice. We specialise in Construction Guarantees, Contractors’ All Risk Insurance, Construction Liability, Professional Indemnity and Plant All Risk Insurance.
