Insurance cover for terminated projects
In the Open Standard
Francis Moyalan, PMP,PMI-SPMember for 21 years 8 months
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Hi All,
During these turbulent times of recession, what are the Insurance provisions for projects which are cancelled half way and are standing tall? Most of them are hazardous for the public (like open pits etc.,) and adjacent buildings (flying form work materials!!).....Is CAR policy still applicable for these projects (contractor is already de mobilized!!) There may be 1000s of materials lying in the basement worth millions, who will bear the cost of the Insurance for these (in case of any fire!!)?
There are several cases reported where insurance companies are receiving exorbitant claims for material damages, here how insurance companies can brace themselves from illegitimate claims?
Thanks for your suggestions.
During these turbulent times of recession, what are the Insurance provisions for projects which are cancelled half way and are standing tall? Most of them are hazardous for the public (like open pits etc.,) and adjacent buildings (flying form work materials!!).....Is CAR policy still applicable for these projects (contractor is already de mobilized!!) There may be 1000s of materials lying in the basement worth millions, who will bear the cost of the Insurance for these (in case of any fire!!)?
There are several cases reported where insurance companies are receiving exorbitant claims for material damages, here how insurance companies can brace themselves from illegitimate claims?
Thanks for your suggestions.
1 reply
Oldest first- 0Samer Zawaydeh ·Dear Francis,
You have two partis; the Client and the Contractor. If the Contractor did not complete his work (deliverables) as per the Contract, and they have left the site, then you have two issues: Contractural Default and Civil Liabilities.
Until both parties solve their differences, they are both liable to the accidents that happen. There are many type of insurances, maybe, just maybe, that the insurance that the Contractor has covers these circumistances.
Insurance companies are smart. They have representatives at site that go periodically and take pictures. Do not worry about them.
If you need to raise awarness, you can raise awareness to the passing by people who might get injurred. Ask the municipality to do something about that by sending them official notices to make the site safe.
With kind regards,
Samer
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