Construction and Installation Insurance

• Additional costs for construction site management works after the insured event;
• Auxiliary equipment for construction work, such as formwork, scaffolding, temporary housing for builders, etc.;
• Construction machinery;
• Assets that already exist on the construction site due to the risk of damage caused by construction works;
• Other additional costs, such as document restoration costs, additional costs for overtime or night work, expedited delivery costs, and so on;
• Delayed business activity, consisting of lost profits and fixed costs, due to an insured event.

As of 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 assets. 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 an extra-contractual or mixed basis.

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 EUR 43,000. Upon completion of the construction works, the civil liability insurance for the performed works is valid for another two years.

This insurance applies to all buildings and structures that are being constructed, reconstructed, repaired, modernized, or upgraded, which are not subject to mandatory construction insurance, as well as to various equipment and production lines during their installation, setup, and testing.

Insurance coverage applies to:

Losses due to all sudden and unforeseen events, including:

- Fire;

- Theft of equipment and construction materials;

- Illegal actions of third parties;

- Natural disasters.

By an additional rider, insurance coverage applies to third-party liability.