Summary
When COVID-19 hit, both insurers and the insured had to grapple with policy claims and whether a product responded to the crisis. This was no different in the construction industry where parties had to examine their policy language to understand if the damage sustained by the pandemic was the same damage they could claim for under insurance. This article takes a look at how some typical construction insurance policies have responded and further, how the insurance market may evolve post-pandemic and how stakeholders can re-look their risk management approaches and insurance solutions.
A. Introduction
When COVID-19 unleashed its fury, global business operations and supply chains were severely affected. The construction industry was no exception. The industry was held hostage by its ties to heavy on-site requirements and operations, supply of materials and equipment and labour continuity.
In Singapore, the pandemic stopped most construction works and we are only seeing a gradual resumption in recent months. Even so, it’s been a slow return and the Government announced the S$1.36bn Construction Support Package on 27th June 2020 to give financial support to construction…
