ABSTRACT
Based on the assumptions made regarding the scope of work, Contractor is responsible for procuring insurances for the Project soon after the award of the Contract. The type of insurance is indemnity based. Following are major insurances one procures: (1) Erection All Risks insurance for full replacement value equal to the Contract Price, in other words, the value of fully constructed and commissioned Plant, (2) Third Party Liability Insurance to cover death, injury, or property to the third party, where the first party is the Owner and the second party is the Contractor, and (3) Marine Insurance to cover the risk of imported cargo in shipments related to permanent equipment and materials required for the Project. Separate insurance is required for covering risks of construction equipment that Contractor uses in the Site and for workers/employees.
In addition to the above, Contractor ensures that his Subcontractor at Site and Vendors at their respective shops procure all insurances required thereof.
