Construction project insurances - what project managers need to know.

The Project Manager must know what insurances the client has in place to cover the construction works. This includes, understanding the terms of the policy, what’s covered and what’s excluded, the duration of the policy, and what the excesses are on the policy.
The Project Manager needs to evaluate the risks and put appropriate insurance cover in place. It may be necessary to arrange additional insurance should the client’s insurance be inadequate,or if the policy excesses are too high.

There are various insurances a project should always have, these include, amongst others:
1. plant and equipment insurance
2. insurance of the works
3. public liability insurance
4. workers compensation insurance
5. professional indemnity insurance if there’s design involved

The company may already have some ofthese policies in place making it unnecessary to take out additional cover. Nonetheless, the existing policies must be reviewed to ensure they adequately address the risks on the project. For instance, additional cover may be required if the project:
1. is in another country, since some of the standard policies mightnot apply
2. is located in a region prone to tropical diseases, where it’s important to know personnel on the project will be covered in the event someone becomes ill
3. is in a remote region,insurance should be in place to cover flying a patient home for emergency treatment, which could cost several thousand dollars
4. contains particular risks which are specifically excluded from the policy
5. has a value in excess of the existing policies
6. requires the use of high value equipment items not included in the policies

If there are any doubts as to what insurance cover should be in place check with qualified experts on the matter such as,the insurance broker your company deals with.
(from 'Successful Construction Project Management - The Practical Guide' by Paul Netscher)