Insurance of construction and erection risks
In the insurance of construction and installation risks, there are four subspecies of insurance.
Insurance of construction and erection works (property damage).
2.Insurance of liability to third parties for construction and installation works.
Post-warranty guarantee insurance.
Insurance of financial losses of the Insured caused by delay in construction (installation) of the facility.
These subspecies of SMR can be insured separately and in a complex, except for the financial losses of the Insured caused by the delay in the construction (installation) of the facility.
Insurance of construction and erection works (property damage)
The insurance company can insure:
– The result of construction and installation works
– Materials used for construction
– Equipment used in construction (machinery and other equipment for construction and installation works)
– Equipping the construction site (warehouses, scaffolding, technical networks, etc.)
-Extensive and capital reconstruction of premises and structures
– Installed equipment
– Equipment and materials that are delivered to the construction site (except for deliveries by air and water transport)
This type of insurance may additionally include the following property:
– The existing property, which is located on the construction site. In the immediate vicinity of it. The property that belongs, is stored and is under the direct control of the customer or contractor
– The property of the insured, which is located outside the construction site or erection (wagon, temporary town of the contractor, warehouse building materials)
– The property of the insured is the result of the construction and installation works, taken by the Customer and / or put into operation before the completion of the project as a whole
– Documentation of construction and installation works (project drawings, project estimates and accounting documents)
Insurers and who can they be?
The general contractor, often the insured. The right to insure construction is also owned by the developer. The decision on who will insure the construction, which of the parties, is indicated in the contract of the contract and is discussed additionally. In addition to the insured, the insurance contract may include individuals and legal entities that participate in the construction project (construction suppliers, construction designers, contractors and subcontractors)
Amount of insurance compensation
According to the contract for insurance of construction and installation works, the insurance company must pay to the insurer the amount specified in the contract (liability rate) for unforeseen and unexpected material damage caused to the insured property by occurrence of insured events, according to the contract.
Bovari insurance offers the following forms of insurance compensation:
“Surety for all risks”
This form of insurance implies payment as a result of damage from destruction or breakage of the insured property due to various kinds of exogenous factors. An exception can be general and special deviations.
Unintended and unexpected exogenous factors, in particular, include:
– Errors in carrying out construction and installation works, malfunctions in insured objects
– Unintentional actions (or inaction) of builders, technicians, engineers and other construction workers, as well as deliberate actions of third parties, committed by negligence, or illegal actions of third parties
– Influence of electric power due to short circuit, congestion of electricity, lightning, etc.
– Damage to cables and chains, falling objects and other parts
– All kinds of accidental and unintended external events that occur during the manufacture of construction, installation, as well as during the preparatory, commissioning works, due to which material damage to the insured property is possible.
“With bail for certain risks”
With this form of insurance, damage is paid from the destruction or breakdown of the insured property, when the following events occurred:
– Ignition, flash, lightning strike, as well as causing damage to insured property due to special fire extinguishing measures or extinguishing fire
– Ground tremors, tsunamis, collapse, avalanches, as well as other incidents that are, or are possible, on formal grounds, to be classified as unreliable geological phenomena
– Floods, floods, landslides, as well as other events that are, or are possible, on formal grounds, be classified as unfavorable hydrological phenomena
– Tornado, snowstorm, hurricane, cyclone, squally wind, hail, heavy rainfall, as well as other events that are, or may be, formally attributed to dangerous meteorological phenomena
– Falling or falling of soil
– Damage to water supply systems, heater