Construction and Installation Insurance

Construction and installation risk insurance

For clients related to the construction business, SG "TAS" offers a unique product - voluntary insurance of construction and assembly works, which includes property protection, as well as third-party liability insurance.

The essence and purpose of the service

Construction and installation risk insurance (hereinafter referred to as construction risk insurance) is a complex of insurance services that will protect against accidental death or damage to construction objects, construction machinery and equipment, materials, as well as against the occurrence of professional liability for causing damage to third parties.

Why voluntary accident insurance is relevant for all participants in the construction process

First, construction is a zone of increased danger.

Any construction and assembly work involves the dynamic use of a large amount of machinery and various equipment, a variety of construction materials, as well as intensive interaction of process participants with each other and their constant contact with machines, with harmful and dangerous substances, with an aggressive external environment. This creates conditions of increased danger, greater probability of accidents and accidents.

As a result, construction and assembly activities, more than other types of business, are characterized by adverse events that can lead to damage or loss of property (usually high-value), as well as harm the health of employees and other persons.

Compliance with safety rules helps to minimize such cases, but it is impossible to avoid them completely. However, the use of special insurance tools makes it possible to protect against their consequences.

Secondly, voluntary insurance of construction activity is the only comprehensive instrument for insurance protection of the interests of its participants.

Today in Ukraine there is no legally established norm of mandatory insurance of construction and installation works, which does not diminish its importance, but only actualizes the need to use such services by the will of the participants of the construction business.

Who needs a life insurance policy and who can conclude a contract

Such a policy is necessary for entrepreneurs who have a license and carry out any construction and installation work or for persons interested in preserving the insured property.

These can be various legal and natural persons, FPOs, namely:

• investors;
• customers;
• contractors and subcontractors;
• construction creditors;
• owners and tenants of property (insurance of construction equipment, machines, equipment).

What does insurance give to construction participants

Such an agreement provides compensation for damages and compensation of costs in the event of unforeseen events in the process of construction and installation work from the start of the project (zero cycle) to the moment of putting the facility into operation.

Features of construction insurance

What can be insured under a death insurance contract

This type of insurance covers various aspects of capital construction and installation works, which concern both unfinished construction (houses, industrial and commercial buildings and structures), and already commissioned facilities.

The following are subject to insurance protection:

• objects of construction and assembly works (houses, industrial and commercial buildings and premises, other);
• construction equipment, mechanisms and installation equipment;
• construction site equipment;
• auxiliary buildings;
• structures and building materials;
• other property located on the construction site (near it), owned by the insured or under his responsibility;
• responsibility for damage caused to the health and property of third parties.

What is an insured event for death insurance?

When insuring construction and installation risks, this is damage, death or loss of the insured property as a result of unforeseen circumstances agreed upon in the contract.

In the case of third-party liability insurance, this is the occurrence of an obligation on the part of the insured to compensate for damage caused during construction and installation work:

1. the life or health of individuals, including: death, bodily injury or other health disorders that led to a decrease or loss of working capacity;
2. property of legal entities and individuals.

The main product risks are:

• fire risks;
• action of water;
• natural phenomena and natural disasters;
• illegal actions of third parties;
• transport risks;
• battle glass;
• other fortuitous events agreed by the parties.

Types and features of insurance coverage for death insurance

A convenient feature of the product is the possibility to insure various aspects of construction and installation works within the framework of one contract.

At the same time, upon agreement of the parties, the contract can be concluded with insurance coverage: for a certain list of risks and against all of them at once.

SG "TAS" can provide the following options for insurance protection:

• Construction All Risk Insurance (CAR). Guarantees coverage of material damages on "all risks" terms for any facility built under a construction contract.
• Installation insurance against all risks (EAR). Guarantees compensation for material damage at installation sites on "all risks" terms.
• Civil Liability Insurance (TPL) Guarantees compensation for damage caused to third parties as a result of any events related to the insured's construction activities.
• Insurance of the customer's loss of expected profit (ALoP) / due to delay in commissioning of the insured object (Delay in Start-up).

Insurance coverage is valid throughout the duration of contract works.

At the same time, the liability of the insurer to the client increases in proportion to the increase in the value of the insured property.

Place and terms of validity of the insurance policy

The territory of the insurance is a specific place (address) where construction and installation operations are carried out.

The term of validity of the contract is individual and depends on the duration of construction and installation work: it can be valid for more than a year and can be extended at the request of the policyholder.

How insurance works

The contract guarantees financial compensation for the costs of restoring damaged insured property or compensation for damage caused to the health or property of third parties.

The amount of compensation is determined by the insured, who determines the insured sum and agrees it with the insurer.

At the same time, in the event of an insured event, the insured must:

• notify the insurer of the occurrence of the event by any documentary method within 3 (three) days from the day of its occurrence;
• take all possible measures to save the insured property, reduce the amount of losses and damage caused to third parties;
• report the event to the relevant competent authorities within 24 hours;
• provide the insurer with documents confirming the occurrence of the event.

What can be included in the insurance reimbursement?

The property interests of the insured are compensated in an amount that is comparable to the amount of expenses necessary for the restoration or repair of the damaged property, taking into account:

• the cost of new designs and components to replace damaged (lost) ones;
• the cost of dismantling the property, clearing the territory, etc.;
• the cost of delivery of new structures, components, materials;
• expenses for wages of employees, which eliminate the consequences of insurance events;
• other expenses (upon agreement of the parties).

Liability insurance covers damage caused to the life, health or property of third parties during construction and installation operations.

At the same time, an unconditional deductible is provided for both directions - a part of the loss that the insurer does not compensate.

How the insurance amount is determined

The insured amount for the insured's property is determined based on the following parameters:

1. full project (contract) cost of construction and installation works;
2. real (market) value of machines, mechanisms, equipment and other property.

Insurance amounts can be set separately for each stage or type of work.

The insurance amount for liability to third parties is established by agreement of the parties, but taking into account:

• individual characteristics of the insured object;
• the amount of damage that may be caused to third parties;
• requirements of the legislation of Ukraine;
• other factors.

How is the price of death insurance determined?

The price of the policy is very individual. The insurance rate depends on the following factors:

• type of building object;
• conditions and features of construction and installation works;
• selected risks;
• franchise size;
• other features.

Exclusions and limitations

There are situations that do not belong to insurance cases, circumstances when insurance payments are not made, as well as other nuances that should be discussed with our consultants.

How to prepare and conclude a contract

This is a complex type of insurance, so a comprehensive consultation is required to work out the conditions, calculate the insurance rate and prepare the contract.

Call the hotline or leave a request on the website. Our specialists will contact you immediately, advise on all the nuances and prepare the best insurance that suits you.

Construction and Installation Insurance від СГ ТАС - це гарантії якісного страхового захисту, закріплені такими перевагами як:

• many years of experience in providing insurance services to a wide variety of construction sites;
• reliable reinsurance protection thanks to cooperation with the world's leading reinsurance partners;
• provision of comprehensive insurance protection;
• individual approach to each client;
• the possibility of paying insurance payments in installments;
• round-the-clock support from Contact Center operators.

The third-party liability insurance program from TAS is the right solution for those who are looking for a reliable and flexible way to insure construction and installation works and their liability to third parties.