MECON Insurance has unveiled an industry first cover for the construction industry.
Called Earthworks Advantage Cover, the new endorsement will be optional across all products in MECON’s portfolio, and will cover construction clients for subsidence, collapse or displacement through defective design or weather peril of embankments on work sites.
“There is nothing like it,”
Glenn Ross, CEO of MECON, said of the new cover and its place in the market.
“It is a pretty certain cover, now it has taken all of the uncertainty out of that area of the market and gives you that piece of mind that if you are doing any sort of construction on a residential or civil works site anywhere, that contingency is there for you,” Ross told Insurance Business.
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The cover provides a maximum indemnity of $1 million or 25% of the project value for any single event. The new optional endorsement will also cover increased cost of work for the insured, up to $50,000.
Having visited several major cities across Australia to introduce the cover, Ross said that broker feedback has been “extremely good,” thus far.
Ross noted that the cover came about as there had been market issues with claims on embankments.
The Earthworks Advantage Cover is the latest product released by the construction and contractors plant specialist and follows the launch of another endorsement for liquidated damages several months ago.
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