- The sum insured is the estimated contract value at commencement of the contract, including the value of all materials and free issue materials, plus cost of labour, supervision, P&G’s and mark ups/profit and contingencies (i.e. the accepted tender value).
- The policy is a declaration policy, which requires that the final contract value is to be declared to the insurer on completion.
- Provision can be made for anticipated and unexpected changes in costs, by requesting escalation, inflation and currency fluctuation cover (expressed as a percentage applied to the sum insured).
- The sum insured is the estimated annual turnover (income) for all construction work carried out during the period of insurance.
- The annual turnover includes the value of all contracts which are started and completed within the period of insurance, plus the value of all portions of other contracts which the Insured is working on, but are not either commenced or completed, within the period of insurance.
- The policy is a declaration policy, which requires that the actual turnover is to be declared to the insurer at the end of the period of insurance.