Builders' and contractors' risks insurance

Nowadays, it is difficult to find investment funds; therefore everything should be done to complete the investment works according to the plan.

For whom is this insurance intended?

For everyone who invests into the construction projects or equipment. The insurance can be concluded by investor, contractor or sub-contractor for the pertaining part of works and materials.

The insurance is being concluded for a concrete project or for the balance items of current investments from your bookkeeping records.

Do you need this insurance?

Your property is insured during the normal exploitation through policies that are not intended for providing coverage in changeable conditions in which the investment works take place. Therefore, they do not cover risks that might appear during construction or installation. By concluding this insurance, regardless of whether you

• invest from your own or external resources, or
• are the contractor on somebody's investment, or
• install your own or investor's equipment,

you should achieve the objective i.e. complete investment works successfully and apply them on time for making profit.

What can be insured by this policy?

Everything included into the estimated value of project, i.e.:

• all material and works,
• equipment and auxiliary structures for project realisation,
• machines, devices and installations that are mounted.

The insurance coverage may be contracted to include:

• existing structure being reconstructed, expanded,
• auxiliary structures, tools and accessories, workers' personal belongings.

Successful realisation of an investment project can be brought in question if, for instance, during works you cause damage to the environment and/or third persons by mistake or omission of the workers.

This policy gives you an opportunity to conclude third party liability insurance.

In case any charges are brought against you, the insurance company shall, instead of you, indemnify the third persons and provide the legal protection for you, without slowing down the investment works.

What are the investments insured against?

With one policy you provide cover for all "fire" and technical risks, such as: fire and lightning, explosion, storm, hail, manifestation and demonstration, avalanche, flood, torrent and high water level, slipping of soil, land-slide, equipment breakdown and building/erection accidents.

Insurance protection comprises accidents such as errors during execution of works, breakdown or deformation of equipment, errors in designing, sizing and selection of materials, damages during the trial run.

The insurance lasts during the execution of works, trial run and warranty period.

Damages that occur during the period of construction but with postponed manifestation shall be indemnified during the warranty.

To which value do you pay the premium?

Your investment is being insured to the sum insured that should be equal to the estimated value of project.

What part of damage does the insurer indemnify?

The expenses indemnified are the real expenses of works and material necessary for the project to be brought into state in which they were prior to the occurrence of damage.

How to avoid a reduction of indemnity?

A reduction of indemnity refers only to the value of remainder. If the value was correctly defined and equal to the sum insured, the indemnity shall be equal to the actual damage.

The base for indemnity will be the price of works and materials at the moment of damage, unless increased by more than 10% in relation to the date of insurance conclusion.

What else can you expect from your insurer?

The insurer indemnifies up to 3% of the sum insured for clearing up and demolition related to the damage and up to 1% of the sum insured for the preparation of indispensable technical documentation prior to taking salvage measures.