Construction insurance is a highly specialised type of insurance product wich provides risk cover to the construction industry. Construction insurance covers construction companies against theft of materials, damage to other buildings while a construction project is underway, loss of materials during transit, flood and rain damage, fire damage and liability cover. In addition, construction insurance can also cover companies against loss of income if a project is delayed or cancelled due to any of the events described above. Like any other kind of insurance policy, it is wise for construction companies to take out construction insurance as the cost of the premium will be significantly less than the cost of replacing materials, paying liability claims or covering cancelled projects. Construction insurance policies have become more common in South Africa due to the boom in construction projects and due to the high crime rate which leaves construction companies vulnerable to losses from theft of equipment and supplies.