Major construction failure

Collapse, testing failure, defective design, workmanship, or natural peril damages project works and delays completion.

02 · Industries exposed

ConstructionEnergyReal EstateInfrastructure

03 · Policies affected

CAR / EARThird-Party LiabilityProfessional IndemnityDSU / ALOPMarine Project Cargo

04 · Clauses to test

LEG / DE defectsTestingMaintenance periodCross liabilityDSU critical path

05 · Possible exclusions

Defect rectificationPenaltiesLiquidated damagesDelay without insured damage

06 · Claims implications

Causation, defective versus damaged property, repair betterment, critical-path delay, and allocation among designers and contractors drive the dispute.

07 · Reinsurance implications

Large engineering risks often involve facultative placements and treaty special acceptances, with claims cooperation across markets.

08 · Action now

1.Preserve failed components and design records
2.Notify all potentially relevant policies
3.Separate emergency works, repair, redesign, and improvement costs
4.Update the programme critical path and delay model