How to properly insure an investment project?
What mistakes to avoid for a successful project? We'll advise you on how to choose insurance for construction, installation work, or for the investor.
HOW TO PROPERLY INSURE AN INVESTMENT PROJECT AND AVOID DISPUTES WITH SUPPLIERS?
Does the general contractor or the investor bear the project risks? Only with the first damage will you discover that the general contractor's insurance was insufficient and covers only a small portion of the costs. In the following article, I will show you how to prevent problems and what mistakes to avoid to ensure the project ends in success, not failure.
The investor bears the consequences
Imagine investor's insurance as a lifeboat that is part of a large ferry. In the event of an accident, your life depends on it; in this case, the success of your project. It is suitable for everyone involved in the construction or installation of a work, including the investor.
You must view your investment project in the same way. Whether you are modernizing or building from scratch, dozens of factors can influence the outcome. If you have all risks under control, you will also have control over the successful completion of the project.
Don't rely on the general contractor or subcontractors having quality insurance. Most often, they don't, and you'll only find out when an insured event occurs. By then, it's too late.
From my own experience, I know of several cases where protracted disputes with a subcontractor and insufficient coverage completely crippled or entirely terminated a previously successful project.
The only insurance you have full control over is the one you arrange yourself. You have one hundred percent control over risk coverage and in the event of an insured incident, the insurance payout goes directly to you, and you don't have to claim the money from the general contractor.
Don't waste time, which makes your construction or modernization more expensive. A good broker can assess which insurance is essential for you and set its amount so that an insured event doesn't become your nightmare.
Consider risks holistically
As an investor, you gain an overview of insurance and supplementary insurance parameter settings, and control over claims settlement. The paid out insurance payout so you can use immediately.
Don't deal with risks separately; bundle them together. Why? The benefits are the same as having a general contractor through whom you order all materials. You have a single point of contact, you don't have to approach dozens of companies and you get a volume discount.
Within one package, you can have construction and assembly insurance, liability insurance, solutions for designer errors, etc.
The broker's role is to guide you through this process so that you can focus on successfully completing your project and have a reliable partner by your side who will lend a helping hand in case of difficulties and monitor all risks that might arise during construction.
At Eurovalley, we've been part of dozens of successful projects, and we'd be happy to have your back too. Rely on our experience and dedicate your time to what you understand and what brings you profit. Write to us or call us and leave the insurance worries to us.
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Effective insurance starts with understanding risks. We help clients identify, assess, and manage risks so that their insurance strategy aligns with their real-world operations and long-term vision. Our insurance consulting connects detailed analysis with executive-level decision-making processes.
