Construction and Assembly Insurance (CAR/EAR) Including Liability
The insurance covers sudden damage, theft, or destruction of the insured object or its parts during the construction period caused by any accidental event not excluded in the General Terms and Conditions or in the insurance contract. The insurance provides protection against damages, impairments, destruction, or loss arising in connection with construction or assembly activities, including damages caused by fire, natural hazards, or theft.
The insurance for construction and assembly risks may also include liability insurance for damages caused to third parties by any of the insured parties in connection with the construction or assembly of the project at the construction site or its immediate vicinity.
Subject of Construction and Assembly Risks Insurance
The subject of the insurance is the construction or assembly project carried out in accordance with applicable legal regulations based on approved project documentation including the relevant materials intended to become part of the insured construction project and stored at the insurance location.
If a construction or assembly project is insured, it is also possible to insure:
- the equipment and facilities of the construction site used for the execution of the insured construction project,
- construction and assembly machinery, tools, and devices used for the execution of the insured construction project,
- existing property in case of damage occurring directly in connection with the construction of the insured project.
Who is Insured
The insured parties under the construction and assembly risks insurance are:
- the client of the insured construction project specified in the work contract,
- the contractor of the insured construction project specified in the work contract,
- subcontractors of the contractor, whose supplies are included in the insured amount and are part of the insured project and have the necessary authorization to perform the agreed activities.
Place of Insurance
The place of insurance for construction and assembly risks is the location designated by the project documentation as the construction site or the place of assembly of the construction or assembly project.
Liability Insurance
Additional insurance is liability insurance, which is arranged for the case of legal responsibility of the insured for damage or injury caused to another:
- to movable or immovable property through damage, destruction, or loss,
- to health or death and non-material harm consisting of mental suffering of a close person in case of injury or death of the injured party,
- subsequent financial damage or harm.
Types of Insurance Contracts
Two types of insurance contracts can be arranged:
- insurance contract arranged for a specific construction or assembly project – such a contract has precisely specified construction work, place of insurance, and insurance period. It is always arranged for a fixed term (construction period),
- framework insurance contract – with this contract, the policyholder initially sets the total volume of construction and the maximum value of a single construction project. All projects that meet the conditions of the framework contract fall under this contract. If the value of the project exceeds the maximum value set by the contract, the insurance of this project must be handled individually. At the end of the insurance period, a so-called settlement takes place – the policyholder reports the total volume of construction for the insurance year, and the insurer adjusts the premium if the total agreed volume in the contract is exceeded.