Contractors All Risk

This policy is usually issued in the names of the joint venture operator and other venturers who are referred to as the assured. It gives cover to the assured In respect of loss, damage or liability incurred in respect of a specific construction project. The subject matter of this policy includes all materials, components, parts, machinery, equipment or any other property destined to become part of the completed project. The policy is of two major sections which are:

Section 1 : Physical Damage Cover:

The perils covered here are:

• All risks of physical loss or damage to insured property
• General average and salvage charges
• Sue and labour charges
• Removal of wreckage or debris
• Cancellation costs etc

General Third Party Liabilities

The scope of this section is to indemnify the assured in respect of liabilities to third parties incurred during the course of the construction of the project. The liabilities may be in respect of;

• Loss of life, personal injury or illness
• Loss of, or damage to, or loss of use of property.

Section 1 : Physical Damage Cover:

The perils covered here are;

• All risks of physical loss or damage to insured property
• General average and salvage charges
• Sue and labour charges
• Removal of wreckage or debris
• Cancellation costs etc.

OPERATORS : EXTRA EXPENSE INSURANCE POLICY

This policy has been designed to take care of the costs or liabilities associated with controlling of a well that is blown-out, lost or damaged. The policy is of three sections which are;

Section (A) : Control of Well Cover

This section will indemnify in respect of the actual cost or expenses incurred by the assured in regaining or attempting to regain control of any well insured by the policy and will also include any other well which becomes out of control as a direct result of the loss of control of the insured well. Coverage will also embrace the costs of extinguishing or attempting to extinguish fire from such wells or where fire above the surface of the ground or water bottom endangers the well insured under the policy.

Section (B) : Redrilling Extra Expense

This section takes care of the actual costs and expenses which are reasonably incurred to redrill or restore a well which has been lost or damaged by reason of an occurrence covered under the control of well section of the policy. The policy will indemnify in respect of the costs to redrill or restore drilling wells to the actual depth at which control was lost.

Section (C): Seepage and Pollution, Clean-up and Containment

This section is triggered only in respect of seepage, pollution or contamination arising from wells insured becoming out of control. It does not apply in respect of pollution arising incidentally during operations, for example as a consequence of spills from the drilling deck or from fuels and lubricants in store. The policy will indemnify the assured in respect of sums for which the assured is legally liable or where the liability arises out of any obligation under the terms of the license. These sums will be in respect of the costs incurred in remedial measures and as damages for death or bodily injury to third parties and third party property damage including loss of use.