- General Civil Liability Insurance
Construction insurance is a type of insurance that ensures the protection of insured buildings during their construction or reconstruction. This insurance applies to those who build (ie the contractor) and those who finance the construction (ie the client).
From 2017 this insurance is obligatory for all structures under construction in the Republic of Lithuania.
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From 2017 a new version of the Law on Construction and new rules on compulsory insurance of construction works and civil liability entered into force. Compulsory construction works and civil liability insurance must cover the maintenance works of each building construction, reconstruction, repair, renovation, demolition and cultural heritage objects. Exceptions are made only for simple structures and repairs that fall into the category of simple repairs.
Under these rules, the obligation to take out compulsory insurance arises for the contractor when he concludes a contract with the builder for all the construction work on the building, or for the builder himself, in cases where the builder carries out construction on a farm or mixed basis or works.
The term of the insurance contract covers the period from the beginning of construction works to their completion. The sum insured for construction works must be not less than the value of the construction works performed, and the minimum amount of civil liability insurance must be 43 000 EUR. Upon completion of the construction works, the civil liability insurance for the performed works is valid for another two years.