Iron swords and the law of contractor policies
Oct 18, 2023
By: Attorney Lior Akai
Question: In a state of war as declared, when the sites are shut down, what is the law on the contractor's policies? In addition, what happens from the moment the authorities approve the return to work in parallel with a state of war? Is there an extension of validity, compensation, participation or anything on behalf of the insurance companies or the state?
By: Attorney Lior Akai
Question: In a state of war as declared, when the sites are shut down, what is the law on the contractor's policies? In addition, what happens from the moment the authorities approve the return to work in parallel with a state of war? Is there an extension of validity, compensation, participation or anything on behalf of the insurance companies or the state?
answer:
The war situation that has led to the shutdown of construction sites in Israel poses many challenges. From the perspective of insurance companies, this is a matter of "good will" and nothing more. As long as the war is still ongoing, there is no choice but to wait and see whether the insurance companies will be willing to come to their customers at the end of the period and extend the contractor policies without additional payment.
It should be noted that within the framework of the contractor's policy, a situation of work interruption on site is problematic, as the policy usually allows for a break that does not exceed 90 days. In fact, after 90 days, the policy has no issues.
Therefore, in the event that the work stoppage extends beyond 90 days, a special request must be made to the insurance company to keep the coverage valid.
In such a case, the insurance company is asked to approve the continued validity of the policy and will usually allow this by conducting a survey to examine the safety conditions of the site and determining protection requirements and conditions specific to the case, including protection conditions.
While the war continues and the instructions of the local authorities are clear, site insurance should not be stopped/frozen. This is because even a "standing construction site" by its very nature carries inherent dangers (even if no work is currently being done on it).
As far as the state is concerned, the National Property Tax Compensation Fund is responsible for compensating construction sites that have been hit by rockets or missiles. The compensation is for damage to property, equipment, and inventory (depending on the condition and value before the hit).
Property tax regulations allow businesses in school communities to also receive compensation for indirect damages caused by the shutdown, and in certain cases the state specifically extends this entitlement to communities that are not "school communities."
The Iron Sword War is a "nationwide" war that has caused heavy damage to the entire economy. It is hoped that the state will be able to allow claims for indirect damages even outside the war zones due to extension, shutdown, lack of manpower, and the like.
It seems that this time there is a high probability that the state will expand the compensation to all businesses in the economy according to criteria it will determine, as the paralysis of business activity creates significant difficulties for the entire economy.
Answer:
The war situation that has led to the shutdown of construction sites in Israel poses many challenges. From the perspective of insurance companies, this is a matter of "good will" and nothing more. As long as the war is still ongoing, there is no choice but to wait and see whether the insurance companies will be willing to come to their customers at the end of the period and extend the contractor policies without additional payment.
It should be noted that within the framework of the contractor's policy, a situation of work interruption on site is problematic, as the policy usually allows for a break that does not exceed 90 days. In fact, after 90 days, the policy has no issues.
Therefore, in the event that the work stoppage extends beyond 90 days, a special request must be made to the insurance company to keep the coverage valid.
In such a case, the insurance company is asked to approve the continued validity of the policy and will usually allow this by conducting a survey to examine the safety conditions of the site and determining protection requirements and conditions specific to the case, including protection conditions.
While the war continues and the instructions of the local authorities are clear, site insurance should not be stopped/frozen. This is because even a "standing construction site" by its very nature carries inherent dangers (even if no work is currently being done on it).
As far as the state is concerned, the National Property Tax Compensation Fund is responsible for compensating construction sites that have been hit by rockets or missiles. The compensation is for damage to property, equipment, and inventory (depending on the condition and value before the hit).
Property tax regulations allow businesses in school communities to also receive compensation for indirect damages caused by the shutdown, and in certain cases the state specifically extends this entitlement to communities that are not "school communities."
The Iron Sword War is a "nationwide" war that has caused heavy damage to the entire economy. It is hoped that the state will be able to allow claims for indirect damages even outside the war zones due to extension, shutdown, lack of manpower, and the like.
It seems that this time there is a high probability that the state will expand the compensation to all businesses in the economy according to criteria it will determine, as the paralysis of business activity creates significant difficulties for the entire economy.
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