Questions and Answers - The Corona Crisis and the Construction Industry
Apr 3, 2020
Question:
Good morning Itzick,
In light of the situation, we are considering ceasing operations at several sites until the furor passes.
We are seeking advice on how to do this in the context of insurance.
Is it possible to freeze policies? What are the conditions for freezing?
If the policy is frozen/cancelled, what happens if someone is injured in the area (passerby)?
Question:
Good morning Itzick,
In light of the situation, we are considering ceasing operations at several sites until the furor passes.
We are seeking advice on how to do this in the context of insurance.
Is it possible to freeze policies? What are the conditions for freezing?
If the policy is frozen/cancelled, what happens if someone is injured in the area (passerby)?
The answer
First, the construction industry has been defined by the state as an essential industry for the economy , so as of today, work in it can continue at full capacity .
- In principle, even with a complete or partial cessation of activity , the risks continue.
- As is known, a site that is in the midst of construction and where work has stopped constitutes a dangerous place for the public, and insurance incidents may occur there.
- Therefore, insurance should not be discontinued; on the contrary , continuity of insurance coverage must be maintained.
- To your question regarding "freezing the policy" - there is no such concept in contractor work insurance. Insurance can be canceled, but it cannot be "frozen". If it is a project where significant work has begun - it is not recommended to cancel the insurance.
- In my opinion, if there are significant work stoppages in the economy and on construction sites, we can later demand that the insurance companies take into account the special situation that has arisen, and allow for a free extension. I hope and believe that they will be considerate.
- Regarding work interruption – according to the policy definition, insurance coverage for the site continues as long as the work interruption does not exceed 90 days. In your policies, this definition has been extended to 120 days.
- If the site is closed - depending on the matter, it is advisable to maintain security, remove safety hazards, and keep it clean and free of obstacles, as much as possible.
- I hope it's clear, I am at your disposal for any questions and/or specific advice regarding a specific website.
May we have better days and good health for everyone.
Best regards,
Itzick Simon
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