ABSTRACT
In large construction projects, several insurance companies and/or Lloyd's syndicates are likely to participate in order to spread the risk. The formation of insurance arrangements will usually commence when the insured approaches its specialist construction broker with details of the risk to be covered including contractual details. The broker discusses the project with the owner/employer or the contractor, depending upon who is placing the risk. The broker usually supplies the underwriter with a breakdown in value of the property to be insured, for example, buildings, foundations, subsoil etc. The broker acts as intermediary, and will negotiate the terms of the insurance on behalf of his or her client, the insured, and answer any questions the underwriter may raise. The contract of insurance is contained in the slip, but once a policy has been issued, that is the document containing the terms of the contract. The contract will terminate in accordance with its terms as indemnity insurance takes the form of periodic contracts.
