Contractors/Erection all risk insurance

CAR/EAR (Contractors All Risks / Erection All Risks) is an insurance contract type directed to investors as well as to enterprises dealing with construction and erection works. The insurance cover includes any sudden, accidental and unforeseen fortuitous events (All Risks) providing that they have not been clearly excluded in general insurance conditions.

The purpose of the insurance is to provide all the parties involved in the construction or erection process with the financial means that will make it possible to restore property damaged resulting from a fortuitous event as well to cover third party claims raised in relation to the construction process executed.

The insurance contract consists of two parts:
Section I lists material damages to the construction or erection object (costs of materials, equipment, machines, installations, as well as labor) as well as to temporary facilities and light construction equipment.
Section II lists damages incurred by third parties in connection with the construction and erection works conducted.

The scope of the insurance can be additionally extended with the following items, among others:

  • The costs of removal of debris,
  • The costs of employing surveyors,
  • Insurance of the existing property on the construction site present before the commencement of construction works on the site,
  • Insurance of property during its transport to the construction site,
  • Insurance of additional overtime labor costs.

Additionally, the contract can be extended to include the ALOP – Advance Loss of Profits insurance. The insurance cover includes the investor’s loss of profit resulting from delay in the execution of construction and erection works. The delay can result from damage covered under the CAR/EAR insurance.

Machinery and construction equipment insurance

Machinery and construction equipment insurance (Contractors Plant and Machinery – CPM) makes it possible to provide insurance cover for the machinery and construction equipment used on the construction site as well as during its warehousing, storage, transport or transfer in the self-propelled travel mode.

The insurance cover includes all sudden, accidental, and unforeseen events (All Risks) providing that they have not been clearly excluded in general insurance conditions. This means that the insurance also covers damages caused by fire, falling equipment or burglary. Construction machinery and equipment is insured to the value equal to the costs of replacing it by machinery of the same type, including additional charges, such as the customs, taxes, transportation, and assembly costs.

Insurance cover can also be extended to include the following items, among others:

  • Insurance of costs connected with debris removal and other remains,
  • Surveyor costs,
  • Additional labor costs of work in overtime and at night,
  • Machinery protection during underground works.

Machinery breakdown insurance

Insurance cover under machinery breakdown insurance (MB) includes the costs of machinery replacement or repair incurred due to mechanical or electrical damage or boiler explosion, etc. The insurance usually covers air-conditioning systems, compressors, blowers,
generators, transformers, engines, and other production machines.

Events covered under standard property insurance against fire and other perils (including fire, fire, lighting strike, burglary and robbery) are excluded.

An extension to the MB insurance cover is the Machinery Loss of Profits (MLoP) insurance. The insurance provides compensation for losses connected with loss of gross profit incurred in relation to machinery breakdown.

Zdjęcie: Archiwum PBG

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