What is Leg 3 in a builder risk?
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What is Leg 3 in a builder risk?
LEG 3, aka the cost of correcting or making good, is an endorsement that narrows the policy’s automatic exclusion to provide broader coverage for faulty design, materials and workmanship during the course of construction, as defined under the Builders Risk policy.
What are leg clauses?
LEG clauses are a suite of exclusion clauses developed by the London Engineering Group (a set of lead underwriters) designed to suit engineering risks.
What is the difference between LEG2 and LEG3?
Note the difference between LEG2 & DE3/4 : DE3 / 4 exclude the damage and hence cost of Reinstatement, LEG2 excludes the amount it would have cost to replace the defective parts immediately prior to the loss occurring.
What is a DE5?
DE5: Design Improvement Exclusion (1995) This Policy excludes: a) The costs necessary to replace repair or rectify. any Property Insured which is defective in design plan.
What is Leg 2 insurance coverage?
LEG 2. Compromise Exclusion provides coverage for costs to remedy ensuing loss to covered property and costs to remedy damage to property supported by defective property. LEG 2 excludes the costs incurred to remedy a defect immediately before the damage occurred.
What is leg exclusion?
Exclusion LEG 1/96 – “Outright Defects Exclusion”: excludes all loss or damage due to defects of workmanship, materials or design.
What is LEG3 06?
LEG3/06. Provides full cover for both the defective and non- defective property provided there is damage to any portion of the property containing the defect as a result of the defect.
What is LEG2 96?
LEG2/96. Excludes any component part or individual item that is defective and access costs but gives cover for damage to property containing the defects and other parts of the insured property that are free of defect provided there is damage to the defective portion.
What is DE3 cover?
DE3 excludes property which is defective, but gives cover for other property which is free of defect and is damaged by defective property. DE4 is similar to DE3 but restricts the exclusion to any ‘component part or individual item’ which is defective.
