To minimize the risk impacting to a project, the Insured will usually use various preventive measures. This includes a good management system, sufficient training, lesson learnt from previous losses and damages, using reliable contractors, having a contract term to transfer risk and etc. Even after all such preventive risk management measures are used, incident still cannot be totally eliminated and avoided. Purchasing an insurance product is a general way for protecting the Insured against the residual risk in a project lifecycle and to transfer such risk to the Insurer.
This presentation will outline the insurance requirement under the various contract forms and explain the insurance products generally required as well as their coverage and interests during the project life cycle. Finally, a process of procurement of the insurance product and the claims procedure are also discussed.