Construction and Erection All Risks Insurance
Essential protection for investors and contractors, covering the work in progress, construction materials, and liability for damages from the start of construction until final approval.
Comprehensive coverage for risks associated with construction projects and the installation of technological units
The execution of construction projects and installation of technologies carries specific risks that standard property insurance does not cover. Construction and Erection All-Risk (CAR/EAR) insurance operates on an "All-risk" principle, protecting the investor's investment and the contractor's financial stability from the financial impacts of unforeseen damages. It is intended for all participants in a construction project – from the general contractor to subcontractors and the investor – and covers damages to the work under construction, construction materials, and machinery.
Specifics of construction and erection all-risk insurance
All-risk Principle
This insurance is designed as "all-risk" coverage. This means that any material damage or loss to the insured item that occurs suddenly and unexpectedly is covered, unless explicitly stated in the exclusions. This provides much broader protection than a classic list of perils.
Who is it for?
The insurance can be arranged by either the investor (to have full control over the insurance payout and scope of coverage) or the construction contractor (who bears the risk of damage to the property until the work is handed over). The policy typically protects the interests of all involved parties, including subcontractors working on the construction site.
Trial Operation and Reconstruction
For erection all risks (EAR), the critical phase is the trial operation, when the technology is tested under load. The insurance can be set up to cover this risky period as well. Similarly, it's possible to insure not only new constructions but also reconstructions, where both the new part of the work and potential damage to the existing structure are covered.
Examples of real-world events this insurance covers
Flood on the construction site
Torrential rain flooded the excavations and damaged stored insulation material. The insurance company will cover water pumping, drying, and the purchase of new supplies.
Load falling from a crane
During handling, a concrete panel fell onto an already completed section of the ceiling. The insurance will cover the costs of repairing the damaged structure and the destroyed panel.
Theft of installed technology
Thieves dismantled and stole an already installed gas boiler and copper piping during the night. Since these were part of the ongoing construction, the damage is fully covered.
Damage to neighboring property
During foundation excavation, vibrations caused cracks in the walls of a neighboring house. The insurance company will cover the claims of the neighboring property owner through liability supplementary insurance.
How Eurovalley can help you
Let's talk about construction insurance
The execution of construction projects and installation of technologies carries specific risks that standard property insurance does not cover. Construction and Erection All-Risk (CAR/EAR) insurance operates on an "All-risk" principle, protecting the investor's investment and the contractor's financial stability from the financial impacts of unforeseen damages. It is intended for all participants in a construction project – from the general contractor to subcontractors and the investor – and covers damages to the work under construction, construction materials, and machinery.
