A property developer in Kenya typically needs different covers at different stages of a project: contractors' all-risk and site liability during construction, building and fire cover from practical completion, property owners' liability once the building is occupied, and loss-of-rent cover once it is earning. The mistake most developers make is buying one policy once — and leaving a stage of the project exposed.
During construction: contractors' all-risk
Contractors' all-risk (CAR) cover protects the works, materials on site and construction plant against damage, and includes liability for injury or damage caused by site activity. Check your construction contract: it specifies whether the contractor or the developer must arrange it, and financiers almost always require it as a lending condition.
At completion: building cover
The moment the project reaches practical completion, CAR cover winds down and the finished structure needs its own building and fire & special perils policy — insured at full reinstatement value, not construction cost. The gap between handover and the first building policy is a classic uninsured window.
During occupation: liability
Once buyers, tenants and visitors are on the premises, property owners' liability answers for injury and third-party damage claims — including legal defence costs, which arrive whether or not you were negligent.
Once earning: the income itself
If the development is held for rent, loss-of-rent cover protects the income stream while insured damage is repaired. For leveraged developments this is often the cover that saves the project, not the rebuild cover.
Don't forget the professional team
Architects, engineers and quantity surveyors should carry their own professional indemnity, and contractors may need bid and performance bonds. A broker can arrange the whole project ecosystem at once — see our developer insurance page for the full picture.
