1) Indemnities against claims losser from damage for example at case of fire , theft and vandalism .
Insurance
Insurance injured against third party when fire happen the material of the thrid party will also make she / he lose .
2. Contractors will normally purchase insurance to protect themselves from loss and liability . Identify and describe FIVE ( 5 ) different categories of Insurance Risks ( not events ) that the Contractor will normally insure against .
- EMployer liability to employees - Contractor shall take and maintain in the joint names of employer , contractor , sub-con in respect to personal injuries / death & injury / loss and damage of property due to work excavation .
- THird party liability - The policy shall cover 3rd party liability for personal injury / death / damage to property
- Damage property - Event of fire , theft , vandalism and breakage
- Insurance of work - Contractor shall take CAR ( Contractor all risk ) insurance policy for a value not less than the contract sum under joint names of Employees , COntractor and sub-con including professional fees and removal of debris .
-Contractor have insurance for plant , mechanaries and equipment .
3 ) Identify 5 types of events or perils which the Contractor will need to cover against loss .
- Fire
- Lighting
- Explosion
- Earthquake
- Volcanism
- Tsunami
- Storm
- Cydone
- Flood
- Inundation
4. Explain the meaning of the term " Performance Bond " and its purpose .
- A bond issued to one party of a contract as a guarantee against the failure of the other party to meet obligations specifie in the contract .
Purpose - Performance bond are used by owners who are not sure that they can fully trust their contract , and want a safety net that will pay them back if the project goes wrong with a performance bond , owners can specify exactly what kind of work they want done and hold the contract to it . Government agencies and larger coperation require performance bonds for this reasons .
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