O ISSue a dividend to the firm. 8. An accident on a construction project was des
ID: 1732603 • Letter: O
Question
O ISSue a dividend to the firm. 8. An accident on a construction project was described as follows: A general contractor's worker was drilling holes on the third floor of the project. The vibration of the saw caused a board to work its way to the edge of the building and fall off. The board struck a mason who was working on the next floor down. The injured worker ell against a stack ofloose bricks. These bricks then fell from the scaffolding, breaking a plate glass window on the first floor and striking a car that was parked on the public street below. Discuss the different types of insurance that might be involved in this incident.Explanation / Answer
Described construction project will come under following insurance policy:
1)Contractors' All Risks (CAR) Insurance:
Contractors' all risks (CAR) insurance is a non-standard insurance policy that provides coverage for property damage and third-party injury or damage claims, the two primary types of risks on construction projects. Damage to property can include improper construction of structures, damage that happens during a renovation and damage to temporary work erected on-site. Third parties, including subcontractors, may also become injured while working at the construction site. CAR insurance not only covers those associated risks, but also bridges these two types of risks into a common policy designed to cover the gap between exclusions that would otherwise exist if using separate policies. CAR insurance coverage is common for such construction projects as buildings, water tanks, sewage treatment plans, flyovers and airports.
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