Project Principals face various risks on major development projects, such as budget overruns, errors by contractors or consultants, and worker accidents. These issues can significantly impact the Principal’s financial stability.
Principal Controlled Insurance is tailored for large-scale development and construction projects with substantial financial implications. Unlike conventional Project Insurance, which covers contractors and consultants, this insurance program is designed to protect the Principal.
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.
What does this Insurance Cover?
A Principal Controlled Insurance policy safeguards you from various financial losses, including but not limited to those resulting from design errors, quantification issues, and specification faults. This also encompasses “Fit for Purpose” coverage, which is dependent on how the project is executed.
This cover can be obtained on a project-specific basis to include all participants, thus protecting you from substantial financial risks associated with the project.
Our insurance brokers can help you with customised packages that include:
- Pollution Liability
- Contract Works
- Public Liability
- Delayed Start-Up
- Professional Indemnity
General Advice Warning
The information provided on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice on this website is General Advice and does not take into account any person’s individual investment objectives, financial situation or needs. Before making a decision based on this advice you should consider whether it is appropriate to your particular circumstances.
Where the General Advice relates to the acquisition or possible acquisition of a financial product, you should obtain a disclosure document, including the Product Disclosure Statement (PDS) and, where available, Target Market Determination (TMD) relating to the product and consider the content before making any decision about whether to acquire the product.
Authorised by Clearlake Insurance Brokers ABN 16 651 113 861 AFSL 559829
How Clearlake Insurance can help
At Clearlake Insurance, our knowledgeable insurance brokers are dedicated to providing tailored risk advice and managing the placement of your Principal Controlled Insurance program.
For more information or to arrange cover, please contact us on 02 9037 8970 or simply fill out the form below and one of our insurance brokers will get in touch shortly.
