INSURANCE OF CONSTRUCTION AND INSTALLATION RISKS

Insurance of construction and installation risks is divided into two large segments, which have been historically considered together:

  • Property insurance (construction objects, construction works, construction equipment, etc.);
  • Civil liability insurance for construction and installation works.

There are some key processes, which take place in the enterprise and are better to be insured:

  • Dismantling of old equipment;
  • Installation of new equipment (as well as start-up and adjustment of the equipment);
  • Construction of new facilities work;
  • Modernization and / or reconstruction of access to the assets of the enterprise;
  • The construction of new facilities on practically any purpose.

The insurance of construction and installation objects – what can be insured:

  • Under the rules of insurance of construction and installation risks, it is possible to take an insurance on the property, which is being created and used during the construction.

The risks, which are also insured under the rules of insurance of construction and installation risks, are the risks of loss or damage of:

  • The constructed and installed facilities (the objects of capital construction);
  • The equipment of the construction site: temporary buildings and structures, warehouses, scaffolding, temporary engineering communications, other devices, devices and equipment, etc.;
  • Construction equipment, which is used in the process of work;
  • The materials, the constructions and the equipment, which are placed at the construction site and are used for constructing the object;
  • Real estate objects and items on the construction site or in the immediate vicinity of it owned by the customer ("existing property");
  • The put into operation capital construction projects from losses, arisen from the errors (hidden defects), which have been incurred be the contractors while construction and installation works or start-up and adjustment of the equipment took place. The hidden defects are to be discovered during the warranty period. The put into operation capital construction projects from losses, caused by errors, which have been committed by the contractor or their authorized person when performing a post-launch warranty.

   THE INSURANCE AMOUNT AND ITS SETTLEMENT

 The insurance of construction and installation risks implies that the insurance amount of the results of construction and installation works is the full price at the time of completion of the works. It is settled in accordance with the design estimates for the construction of the facility or, in the absence of the latter, for analogue projects (estimated cost).

The value of the objects of capital construction in case of new construction changes from zero cost – at the beginning – to its actual value - at the completion of construction and installation works.

In the case of post-guarantee insurance, the insurance value / insurance amount is set at no more than the estimated amount of unforeseen expenses that the Insured would incur in the event of an insured event.

When insuring an existing property, the insurance amount is established by agreement of the parties, but not more than the actual value of this property, on the basis of documents confirming their value.

The insurance amount for the equipment of the construction site is established in the amount of funds intended for their construction, according to the consolidated estimate for construction or in the amount of the actual cost of the equipment of the construction site, on the basis of documents confirming its value.

The insurance amount for the construction machinery is established in the amount of the actual value of the specified machines, mechanisms, equipment and items, at the time of conclusion of the insurance contract at the location of this property, on the basis of documents confirming their value.

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