Construction All-Risk Insurance
Comprehensive Protection for Construction Projects
Comprehensive Protection for Construction Projects
Protection for Builders and Companies
Construction all-risk insurance covers you against unexpected damage on your construction site. Whether caused by extreme weather, vandalism, or human error – construction projects carry many risks.
With this insurance, you’re protected against a wide range of hazards, such as storm or frost damage to already installed building components. Such incidents can significantly delay your schedule and lead to additional costs. The policy ensures your project continues without threatening your financial stability.
Covered Objects and Risks
The insurance includes all materials and services for new construction or renovation. Typical covered risks include:
- Acts of nature: Unusual and extreme weather conditions
- Human error: Accidental damage caused by mistakes during construction
- Vandalism: Damage or destruction of completed structures
- Material defects: Issues due to faulty materials or ground conditions
All parties involved in the construction project – including builders, contractors, and subcontractors – are covered.
Optional Add-ons for Tailored Coverage
You can expand your insurance coverage with optional modules such as:
- Damage from fire, lightning, or explosions
- Theft of permanently installed components
- Water damage from flooding or high water
- Clean-up and damage detection costs
- Coverage for soil and groundwork
- Express and emergency freight costs
Cost and Duration of Coverage
The cost of construction all-risk insurance depends on the project’s total value, type of construction, duration, and desired coverage level. Insurance begins when the site is set up and ends upon occupancy, official acceptance, or at the latest, six business days after usage starts.
Why Construction All-Risk Insurance Matters
This insurance protects you from unexpected and costly damage during the construction phase – expenses that could otherwise exceed your budget. Many banks require this coverage as a condition for approving construction loans, ensuring your project is financially protected.
With construction all-risk insurance, you ensure your project stays on track – even when unforeseen setbacks occur.
FAQs – Construction All-Risk Insurance
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.
