The contractor is required to procure and maintain certain insurance covers before and during the performance of the work, including protection and indemnity insurance holding the client harmless from claims arising from death or injuries to third parties and/or damage to or loss of their property.

The fiscal limit of this cover is set by the terms of the contract or is governed by the applicable laws of the country. The possibility of damage to the client’s property by the contractor, however, receives a special consideration.

In certain circumstances where the risks are great, the client may go further and indemnify and hold the contractor harmless from all claims by the client for damage as follows:
(a) Any damage to or loss of client-supplied materials during transport by the contractor.
(b) Any damage to the work or facilities as described in the preceding text exceeding $100,000 per occurrence prior to final acceptance.
(c) Any damage as mentioned in the preceding text after final acceptance to the extent that such claims are not covered by the contractor’s insurance.
(d) Any damage to third-party life and property not covered by the contractor’s insurance.
(e) Any damage arising from the use of vehicles supplied by the client to the contractor for use in the work.
(f) Injuries or death of employees of the client caused by the contractor.
(g) Any damage caused by loss of crude oil or other products due to the contractor’s negligence.
(h) Any damage caused by pollution.

credits – Construction Contract by Gulf Publishing Company.