You run risks
As a principal, main contractor or subcontractor you’re involved in a variety of construction or civil engineering work. Projects that vary in size, as well. Perhaps yours is a modest share of the total construction sum. You might only participate in the initial phase or get involved just before completion. Whatever the case may be, u run the risk of damage to the structure.
A fire might break out during construction. Pile driving or well pointing may lead to cracks or subsidence in the surrounding buildings. A storm can cause serious damage to a part of the construction. Accidents, theft, delays are just some of the many realistic examples where you are held liable.
Preventing damage claims
To prevent large claims that threaten the continued existence of your company, it is essential that you cover this risk with a proper Construction All Risk (CAR) insurance. The CAR-insurance will protect you from the financial consequences of material damage, loss and destruction of property or construction related objects that can occur during the realization of the construction project. In addition, it will allow you to cover operational damage.
The CAR-insurance applies to the work for which you take out the policy. This means that the insurance expires upon completion of the work and that you will have to take out a new CAR-insurance for every single new project.
However, there is a possibility to take out a continuous form of CAR-insurance. Unfortunately, this doesn’t mean that you’ll be insured for all your future projects. Taking out a CAR-insurance that accounts for all possible future activities is a pipe dream.