INSURANCE

Construction and assembly risk

Depending on the type and nature of work performed, insurance is divided into construction risk (CAR - Contractors All Risks) and assembly risk (EAR - Erection All Risks).

Construction insurance can be concluded by any side of the investment, but it depends on the content of the concluded agreements and the assumed cost-sharing. In practice, the general contractor usually includes such insurance. This is most advantageous for each party to the contract. It happens that the construction insurance is included by the investor himself. Regardless of the entity making the insurance, the policy must cover all the work performed and all entities that carry it out.

The construction process, not only from the insurance side, is associated with several risks, i.e.

• The action of natural forces
• Material defects
• Design errors
• Errors of construction workers and other participants in the construction process
• Third-Party Action.

The threats listed above may cause damage or destruction of the object of construction or assembly works (erected building, engineering structure, etc.), as well as civil law claims or loss of expected profits by the investor (e.g. due to loss of rent).