Construction all-risk insurance protects builders, construction companies, and all parties involved in a construction project from financial losses due to unforeseen damage during the construction phase. This includes incidents such as vandalism or errors in execution.

This type of insurance is especially important for anyone involved in the construction process – including property owners, contractors, craftsmen, and subcontractors. It covers financial risks that may arise during construction and ensures the project can continue without unexpected financial strain, even if setbacks occur.

The insurance provides coverage for damage caused by:

• Unusual and/or extreme weather events
• Vandalism of already installed components
• Human error and negligence during construction
• Defective materials or ground conditions
• Acts of nature (force majeure)

Optional extensions to the policy may include:

• Damage due to fire, lightning, or explosions
• Theft of permanently installed components
• Flood-related damage
• Cleanup and damage detection costs
• Coverage of soil and excavation work

Generally excluded from coverage are damages caused by:

• Intentional acts
• Acts of war or civil unrest
• Normal weather conditions (unless extraordinary)
• Predictable risks that were not resolved in time

Coverage begins with the setup of the construction site and ends upon completion of the building, official approval, or six business days after the start of usage – whichever comes first.

The cost of the insurance depends on several factors, including the total construction value, project duration, type of construction, and desired coverage. The nature of the project (e.g., new construction vs. renovation) also influences the premium.