Why there is no standard rate
Two contracts of the same value can carry very different risk. A bulk earthworks job in dry conditions and a deep sewer installation beside a river might share a contract value and have nothing else in common. Insurers therefore price each project on its own characteristics, and may apply minimum premiums, conditions and loadings that depend on the risk and on market conditions.
For that reason we do not quote indicative percentages or rand rates on this website. A rate we published could be wrong for your project, and could lead you to budget incorrectly.
The factors insurers typically consider
| Factor | Why it matters | What helps |
|---|---|---|
| Contract value and sum insured | The value of the works at risk is the foundation of the premium. | Declare an accurate value, including variations and employer-supplied materials. |
| Type of work | Pipelines, deep excavation, bridges, tunnelling and demolition carry different risk from earthworks or paving. | Describe the work and any specialist methods clearly. |
| Duration and programme | Longer programmes mean more time exposed to weather and other events. | Provide a realistic programme and the defects liability period. |
| Location and ground conditions | Flood-prone areas, unstable ground and difficult access change the risk. | Share site information and any geotechnical findings. |
| Existing services and structures | Works near live services or existing buildings raise the chance of third-party damage. | Provide drawings, service records and your location procedures. |
| Contractor’s experience and procedures | Insurers consider your track record and risk management. | Describe similar projects you have delivered and your site procedures. |
| Claims history | Past claims suggest how the risk may behave. | Provide an accurate record of recent claims. |
| Excess and limits | A higher excess generally reduces the premium. Lower sub-limits and exclusions also affect it. | Discuss what you can bear yourself before you choose. |
| Extensions required | Maintenance period, existing property, debris removal and special risks add cover and cost. | Match the extensions to what the contract actually requires. |
| Site security | Fencing, guarding and storage affect theft and malicious damage. | Describe your security arrangements. |
Excess, limits and the trade-off
Premium is only one part of the cost of insurance. A lower premium can come from a higher excess, lower sub-limits, narrower cover or more conditions. The right balance depends on what the contract requires and what your business can absorb if a loss occurs.
- Check that the excess does not exceed any maximum stated in the contract.
- Ask what the excess is for each type of loss, such as water damage or theft.
- Ask what sub-limits apply to items such as temporary works or existing property.
- Consider the effect of a series of small losses compared with one large one.
How to get an accurate quotation
Share the contract’s insurance requirements
These set the minimum covers, limits and excesses the quotation must meet.
Provide a clear description of the work
A paragraph describing the scope, methods, plant and location is usually enough to begin.
Declare values honestly
Underdeclaring can lead to a reduced claim. Include variations and employer-supplied items.
Disclose what matters
Tell the insurer about known hazards and your claims history. Non-disclosure can affect a claim.
Ask for options
Ask how changes in excess, extensions and conditions change the quotation.
Documents for a construction insurance quote lists what to gather.
Common mistakes that raise the real cost
- Choosing cover on price alone and finding it does not meet the contract.
- Declaring a contract value that is too low.
- Failing to extend the policy when the programme extends.
- Ignoring exclusions for underground services, water damage or defects.
- Not asking whether special-risk cover is included. See Sasria special-risk cover.
Common questions
Can you give me a ballpark premium?
No. We do not publish or estimate premium rates, because a figure that ignores your project’s details would be misleading. A quotation request with the right information is the only reliable way to find out.
Does a bigger excess always make sense?
Not always. It lowers the premium, but you pay more on every loss, and the contract may cap the excess you are allowed. Choose an excess you can comfortably carry and that meets the contract.
Why might two quotations for the same project differ so much?
Insurers assess risk differently and attach different exclusions, conditions and sub-limits. A lower price may reflect narrower cover, so compare the terms and not only the premium.
Want a quotation based on your project?
Tell us about the work and the contract requirements and we will prepare a quotation request for the insurer.
Get a QuoteAn enquiry does not put cover in place. Cover is subject to underwriting and policy terms.
Related reading
- Contractors All RiskCover for the works under construction, such as roadworks, drainage, pipelines and structures, subject to policy terms.
- Annual vs project-specific contractors’ insuranceAnnual versus project-specific contractors’ insurance compared: how each is structured, when each may suit a South African contractor and what to check against the contract.
- Documents needed for a construction insurance quoteA practical guide to the documents and information needed for a construction insurance quote: project, contract, plant, business and claims information.
- What affects the cost of plant insuranceWhat affects plant insurance cost for contractors: valuation, equipment type and age, usage, location, security, operators, excess and claims record. No premium rates.