#Form of psi insurance full#
#Form of psi insurance professional#

Contractors sometimes purchase additional insurance against this liability. The level of compensation in the UAE, for example, is currently set at AED 200,000 per make. If an employee of a contractor causes the death of a third party, the Sharia law applied in many Middle Eastern countries allow diyah or “blood money” to be claimed by the victim’s heirs from the individual who caused the fatality. Workers’ compensation insurance – This insures the contractor against liability for the death or personal injury to its employees (usually on site) when performing the works.Public liability insurance – This provides cover for liability arising out of death or personal injury to third parties (but not the contractor’s employees, who should be covered by worker’s compensation insurance) or damage to property belonging to third parties (but not the works, which is covered by the all risks insurance) prior to the works being taken over.

#Form of psi insurance professional#

Professional indemnity insurance is also the most important insurance policy that design consultants (such as architects and engineers) are required to have in place. The amount of professional indemnity insurance cover the contractor is required to have in place is generally determined on a case by case basis, depending on the extent and the complexity of the design works in question.

This means that professional indemnity insurance is generally required to remain in place until any limitation period ends (which, in the UAE, is 10 years). Professional indemnity insurance is made on “a claims made basis” (rather than when the breach of professional duty actually occurs). under design and build contracts) against liability arising out of professional negligence and will respond if, for example, designs do not comply with the requirements of the underlying construction contract (although it is not uncommon for professional indemnity insurance to exclude cover for “fitness for purpose” warranties). Professional indemnity insurance – This insures contractors with design responsibility (i.e.This insurance is only generally available if the works are being undertaken in accordance with well established (rather than evolving) construction techniques. For this insurance to be meaningful, the different components of the works must be carefully and clearly delineated.

Once taken over, the risk in the works passes to the employer, who needs to ensure that the works are adequately insured.Īlthough defects are usually excluded from all risks insurance policies, wording can be purchased that provides cover for damage that a defect causes to other parts of the works.

#Form of psi insurance full#

All risks insurance typically covers the full reinstatement value of the works plus a mark up for any ancillary costs (such as consultancy and professional fees) that are incurred.Īs contractors generally have “global” all risks insurance policies that cover all its projects, it is generally more cost effective for contractors to maintain this insurance. All risks insurance – This insures against physical damage to the works (and usually materials on site).The most common forms of insurance under a construction contract in the Middle East, include: Insurance in construction contracts can be complicated and the purpose of this article is to provide an overview of some key issues to be aware of in this intricate area.

As always, in our final section we continue to share with you real life judgements that provide context to the legal landscape in the region. This includes articles and podcasts that delve into the most pertinent topics, such as COP28’s call to action for corporates, ESG reporting, and the UAE’s Net Zero vision.īeyond the focus on Energy and Climate we feature articles covering important updates that look into a variety of areas, such as UAE consumer protection law, an overview of the Federal Civil Family Law for Non-Muslim Foreigners in the UAE, and from Kuwait we discuss the management of companies. In this edition, we feature an entire section dedicated to COP28 where we share insights and intelligence through conversations we have had with leading experts from across the region. You can learn about our actions plans and targets, here. Our goals include Education, gender equality, climate action, justice for all, and sustainable partnerships. As a firm we have a strong commitment to our corporate sustainability principles, and this year we joined the United Nations Global Compact, an initiative dedicated to promoting responsible business practices and advancing the United Nations Sustainable Development Goals (SDGs).