RIAI Breakfast Seminar

1
RIAI Breakfast Seminar

• A Working Knowledge
• of the RIAI Insurance Clauses
• 21st February 2006

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RIAI Breakfast Seminars

• Future Events
• Clause 26 Insurance Implications
• Construction Claims Architects Role
  Involvement
• Performance Bonds Working Knowledge
• Employment Law Legal Insurance Update

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Agenda

• - David Keane
• Overview of Indemnity Position
• - Kevin Fingleton
• Overview of Insurance Clauses

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Insurance V. Indemnity
Deliberate Acts
Inevitable Damage
Terrorism
Breakdown
Pollution
Loss of Profits
Delay
Harassment
Workmanship
Trespass
Design
Injury
P. C.
Fees
Debris Removal
Persons
Theft
Property
Fire Storm Flood
Property
Other Tenants
Business Interruption
Accidental Damage
Employees
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Insurance V. Indemnity
Deliberate Acts
Inevitable Damage
Terrorism
Breakdown
Pollution
Loss of Profits
Delay
Harassment
Workmanship
Trespass
Design
Injury
P. C.
Fees
Debris Removal
Persons
Theft
Property
Fire Storm Flood
Property
Other Tenants
EL/PL CAR
Business Interruption
Accidental Damage
Employees
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Contractors All Risk Insurance (C.A.R.)

• Covers
• Damage to Property/ (Works)Temporary/Permanent
  erected or constructed in connection with the
  Contract.
• All Risk
• S.I. - Includes debris removal / Fees
• Check
• Name/Business Description
• Sum Insured Adequate to cover values of Works
  plus debris removal/fees
• Annual Policy or Specific V. Contract Duration
  plus maintenance
• Inception
• Dates Expiry
• Renewal
• Insurer
• Policy in Joint Names of Contractor/Employer
• Deductible/Excess
• Inflation Provision
• Testing/Commissioning

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Contractors All Risk Insurance (C.A.R.)

• Does Not Cover
• PERMITTED EXCLUSIONS
• War Risks
• Radioactive Contamination/Nuclear
• Sonic Boom
• Loss or Damage due to design - (What about
  consequences)
• Defective Workmanship but not damage resulting
• Wear Tear
• Consequential loss
• Mechanically Propelled Vehicles
• Use/Occupation by employer
• Inventory losses e.g. Pilferage
• Terrorism
• Excess/Deductible

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PUBLIC LIABILITY

• Covers Legal liability for (1) Accidental Bodily
  injury to third parties
• (2) Accidental Loss of or Damage to Property
  of Third Parties
• Arising from Business Activity of Insured
• Occurrence Basis
• Check
• Name/Business Description
• Limit of Indemnity (any one occurrence or series
  arising from one event)
• Annual policy or specific - v Contract
  duration/Maintenance Period
• Inception
• Dates Expiry
• Renewal
• Insurer
• Deductible
• Indemnity to Employer (Specific or as Principal)

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Permitted Exclusions

• Specified Limit of Liability
• War Risks
• Radioactive Contamination
• Sonic Boom
• Employees
• Property Belonging to Insured/ In Custody/
  Control
• Defective Workmanship
• Vehicles under RTA
• Loss or Damage Due to Design
• Pollution/Contamination
• Loss due to use/occupation by employer
• Territorial Limits
• Excess/Deductible
• Terrorism

• Height/Depth Work
• Asbestos
• Burning/Welding Warranty

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Employers Liability

• Covers Legal liability of Contractor for injury
  or damage to employees
• Cover Limit of Indemnity - 13M standard (any
  one claim)
• Check
• Name/Business Description
• Limit of Indemnity (Larger Contracts Require
  higher limit say 25M)
• Annual Policy
• Inception
• Dates Expiry
• Renewal
• Insurer
• Deductible
• Permitted Exclusions
• Limited War Risks
• Offshore Work
• RTA Compulsory Insurance

• Terrorism
• Excess/Deductible
• Employment Practices
• Height/Depth Work
• Asbestos

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P L Reviewing/Specifying the Limit

• Nature of Contract
• No of Contractors/Sub Contractors on site
• Third Party Access
• Third Party Property (Clause 26)
• Contributory Negligence
• Project Supervisor Construction
• Pollution
• Consider Weakening/Removal of Supports/Damage
  Non Neg
• Appendix
• Small Projects Minimum 3M
• Medium Projects Minimum 6.5M
• Large Projects
• Multi Tenant Minimum 10M - 20M
• Assess Risk for Higher

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Existing Structures

• Clause 26
• Advise client in advance of potential insurance
  issues
• Contractor granted waiver for damage to existing
  structures
• Requires - Notification to Insurers
• Multi Tenanted Scenarios
• Contractor has waiver for damage from Employer
• Notify Insurer (Landlord)
• Seek amendment to Insurance
• Contractors PL Limit needs to be amended to
  reflect risk to other tenants contents and this
  increase if necessary will cost

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SF 88

• Clause 17/18 Contractor required to arrange
• - Employers Liability - 13M
• - Public Liability - 1.25M (3M)
• Clause 19 Existing Structures
• In the case of alterations or additions to
  existing buildings all structures, contents,
  the Works, and unfixed materials . . .
  shall be insured by the Employer for the full
  value plus 10 for Professional fees.
• NB Advise client to notify his Insurers.

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SF 88

• Clause 19 Existing Structures
• In the case of alterations or additions to
  existing buildings all structures, contents,
  the Works, and unfixed materials . . .
  shall be insured by the Employer for the full
  value plus 10 for Professional fees.
• Suggestions Existing Structures
• A.) In the case of alterations or additions to
  existing buildings all structures, contents,
  the Works, and unfixed materials . . .
  shall be insured by the Employer for the full
  value plus 10 for Professional fees.
• B.) Amend Clause 18

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White Form - Clause 5 - Insurance

• 5.1.1 Employer or Contractor shall maintain
  appropriate insurance to cover loss or damage to
  physical property and or personal injury and
  death which arise in connection with the
  Contract.
• 5.1.2 Employer Responsible for
• Damage to existing structures
• Damage to the works arising from faulty design by
  the Employer
• Negligence of the Employer
• 5.3
• Policies to be submitted to the Architect for his
  approval
• General Advice
• Make contractor responsible
• Employer to notify Insurers

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Damage due to Design

• Permitted Exclusion under CAR PL
• Clause 25 Contractor responsible for design by
  them excluding
• (a.) any design provided to the Contractor by
  the Employer
• (b.) design prepared by any nominated sub
  contractor or any nominated employer
• Insurance Response
• Blanket Exclusion
• (CAR) Consequences of defective design covered
  excluding that part designed incorrectly
• (CAR) Consequences of defective design covered
  but including that part designed incorrectly but
  excluding additional costs of higher
  specification

NB Full recourse/subrogation against PI of
Architects/Engineers Contractors need a
Design/Construct PI policy
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Panel

• - David Keane
• - Kevin Fingleton
• - Sean Murphy

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• - Regulated by the Financial Regulator as a Multi
  Agency intermediary
• - Regulated by the Financial Regulator as an
  Authorised Advisor

IRELAND LTD
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RIAI Breakfast Seminar

• A Working Knowledge
• of the RIAI Insurance Clauses
• 21st February 2006