Question and Answer – Specific insurance for excavation and clearance work before starting project work
Apr 19, 2024
Question:
In order to begin work on a new project, we are first required to excavate and remove a hill of sand (approximately 35,000 cubic meters per 00). At this stage, we would like to purchase insurance for the excavation work only. How do we do this?
question:
In order to begin work on a new project, we are first required to excavate and remove a hill of sand (approximately 35,000 cubic meters per 00). At this stage, we would like to purchase insurance for the excavation work only. How do we do this?
answer:
The end of the matter is in the first place. Unfortunately, many contractors and entrepreneurs choose to purchase partial insurance for initial work without insuring the entire project with full contractor work insurance from the start. This is a high risk , a mistake that could be costly .
As a construction insurance agency with over 37 years of experience, we strongly recommend purchasing insurance for the entire project . Yes, even if it involves "only" initial work such as earthworks, excavations, etc. Are schedules pressing? Financial considerations? Don't cut corners.
Please note that partial insurance is usually purchased based on a small value of work and the coverage under it may be short on the day of the order, as many sections of the coverage are a derivative of the value of the insured work. Often, partial insurance does not include an appropriate response in terms of the amount of coverage for third parties and, as a derivative, for claims for compensation from the National Insurance Institute (which may be filed after a work accident on site). Especially if serious bodily injuries are caused following a work accident leading to claims in the millions of shekels or to the site itself. Read here, for example, about the contractor who found himself underinsured by almost 4 million shekels "just because" of short piles .
Moreover, if, God forbid, an insurance event occurs on site, it is very possible that the contractor or developer will have difficulty purchasing full construction work insurance afterwards. We are in a time when Israeli and international insurance companies are taking a more cautious approach to the construction insurance market in the world in general, and in Israel in particular.
Insurance companies may impose difficulties on projects that started with "problems" in the early stages of the work, in the sense of "not putting a healthy head in a sick bed." Starting from worsening conditions to a complete refusal to insure.
If the contractor or developer nevertheless decides to take out insurance only for the initial work, it is recommended to do so carefully and without any hesitation. For example, to demand adequate and significant amounts of coverage for third parties, to ensure that all tools used in the work have mandatory insurance, and more. However, all of this may not be enough on the day of judgment.
Answer:
The end of the matter is in the first place. Unfortunately, many contractors and entrepreneurs choose to purchase partial insurance for initial work without insuring the entire project with full contractor work insurance from the start. This is a high risk , a mistake that could be costly .
As a construction insurance agency with over 37 years of experience, we strongly recommend purchasing insurance for the entire project . Yes, even if it involves "only" initial work such as earthworks, excavations, etc. Are schedules pressing? Financial considerations? Don't cut corners.
Please note that partial insurance is usually purchased based on a small value of work and the coverage under it may be short on the day of the order, as many sections of the coverage are a derivative of the value of the insured work. Often, partial insurance does not include an appropriate response in terms of the amount of coverage for third parties and, as a derivative, for claims for compensation from the National Insurance Institute (which may be filed after a work accident on site). Especially if serious bodily injuries are caused following a work accident leading to claims in the millions of shekels or to the site itself. Read here, for example, about the contractor who found himself underinsured by almost 4 million shekels "just because" of short piles .
Moreover, if, God forbid, an insurance event occurs on site, it is very possible that the contractor or developer will have difficulty purchasing full construction work insurance afterwards. We are in a time when Israeli and international insurance companies are taking a more cautious approach to the construction insurance market in the world in general, and in Israel in particular.
Insurance companies may impose difficulties on projects that started with "problems" in the early stages of the work, in the sense of "not putting a healthy head in a sick bed." Starting from worsening conditions to a complete refusal to insure.
If the contractor or developer nevertheless decides to take out insurance only for the initial work, it is recommended to do so carefully and without any hesitation. For example, to demand adequate and significant amounts of coverage for third parties, to ensure that all tools used in the work have mandatory insurance, and more. However, all of this may not be enough on the day of judgment.
מסמכים
