Construction activity insurance is a mandatory procedure for admitting a contractor to start construction work. But today, in the domestic construction market, the situation is such that the investor or customer does not have the right to choose a particular construction company. All orders are executed through tenders in which each construction organization can take part. Well, insurance of construction activities of SROs will reduce the financial burden and will significantly reduce the costs associated with the construction of the facility and its commissioning.
What is insurance for?
In general, insurance guarantees protection of property of construction participants, reduces losses from death or damage to construction sites, property, necessary building materials, taking on all financial risks. All construction participants can act as insurers - from designers, engineers, to lessees of special equipment. Each of them is interested in insuring their part of the work: architects and designers protect the project of the new building they created, engineers protect their professional reputation, general contractors protect liability risks, lessees use special equipment leased, etc.
Types of construction insurance
In general, construction activity insurance is:
- turnkey insurance. In this case, the general contractor bears all responsibility for the construction, delivery of special equipment and building materials, installation, commissioning ;
- according to the principle of “delivery and control” - involves property insurance in construction activities, providing the construction process with materials, necessary special equipment and machinery, workers, etc., by the customer himself. The general contractor conducts general control over installation and construction. Responsibility in this case is insured by representatives of the general contractor, and the customer insures property risks.
How is the contract drawn up?
All property used at the construction site can be insured under the CAR-EAR system, which provides protection for buildings and temporary structures, technological equipment, utilities and other things. The insurance contract is concluded between representatives of the construction organization and the agent of the company. The contract must necessarily indicate the objects and processes to be protected. It:
- construction products;
- special equipment and installation equipment;
- temporary structures, as well as buildings intended for overhaul, reconstruction or demolition;
- the results of the work of installers and engineers: laid engineering communications, installed equipment, etc.
A separate clause of the contract establishes the start date of the insured period. In most cases, the starting point is either the date of receipt of the building permit, or the day the construction work begins. In some cases, the retroactive insurance period is indicated.
Insurance coverage
The next mandatory clause of the insurance agreement is insurance coverage. It is provided on the principle of "protection against all risks." This allows the insurance company to support builders not only in the event of classic dangers: fires, natural disasters, civil liability to third parties, but also from specific risks that may arise. Among them, the most common are:
- designers mistakes;
- defects in building materials;
- shortcomings and mistakes in the work of staff;
- damage caused by electric shock;
- cable breaks and other breakdowns of mounting equipment;
- another.
Sum insured
An obligatory clause of the insurance contract is the amount of indemnity upon the occurrence of an insured event. During the period of direct construction, the total cost of the erected object increases from zero to the full market price. The rate with insurance premiums is growing at the same pace. But do not think that insurance of investment and construction activities is carried out remotely, and company representatives are limited to paper reports on the progress of work.
Each stage of the construction of the building must be subject to an independent expert assessment. An independent examination evaluates the following factors:
- quality of construction at intermediate stages;
- quality of construction and installation works;
- compliance with construction technologies;
- assessment of measures taken and means to ensure the safety of the constructed building;
- other things.
An expert assessment can be provided by both an insurance company and an independent expert organization, which has the right to make such conclusions. In any case, the conclusions of specialists must be brought to the attention of designers and builders. Also, these findings directly affect the final budget of the construction - the fewer comments on the work of builders, the higher the level of security at the facility - the lower the size of insurance premiums.
Conclusion
Construction activity insurance, as can be seen, has a systemic character in which all parties are interested in an objective and fair approach. Thanks to the implementation of insurance programs for unique objects, each contract concluded is universal. It may include the protection of all construction equipment and special equipment at construction sites, including what is used as a short-term lease (leasing). This can also include accident and employee insurance programs, medical insurance, civil or professional liability of construction companies to third parties. Finally, the construction company insurance company itself must include itself in international reinsurance programs that guarantee it to fulfill its obligations and ensure payments in the most critical cases.