Many are accustomed to calling the contractors' work insurance policy, including Chapter A (property insurance), "all risks contractors' insurance." Under the concept of "all risks," an impression of an extended policy is created; however, this is often a standard policy with many question marks.
Are "all risks" really all risks?
Which damages are not included under "all risks"?
And what is the meaning of those clauses and exclusions that the insurance company is not willing to insure you against?
Is the "supposedly extended" but standard policy specifically adapted to the work and unique characteristics of the insured project?
And most importantly: How do you create a property insurance chapter within the framework of contractors' insurance that provides you with maximum insurance coverage at minimum cost?
Chapter A of the Contractors' Insurance Policy.
Property Insurance
Add a Title
Add a Title
What is Property Insurance?
Chapter A in Contractors' Work Insurance Policy
The property insurance chapter within the framework of the contractors' work insurance policy defines an insurable event as physical, accidental, and unforeseen damage to the insured project or part of it from the project's commencement date until the completion date specified in the policy. From the very definition of "what is considered damage," it's clear that this chapter has many limitations that require extensions to provide more comprehensive insurance coverage.
Two simple examples will clarify the dry definition and why attention must be paid to every clause, requirement, or exclusion:
Physical Damage – A fire at a construction site is damage that no one could foresee would happen, yet it did occur. Under property insurance, the contractor will be compensated for the physical damages incurred but not for consequential damages that occurred as a result of the fire, such as delays in key handover resulting from project progress delays caused by the fire.
Accidental and Unforeseen – A contractor is working, for example, on a Tama 38 project, and under contractors' work insurance is covered for property damage (without currently addressing in detail the Tama 38 policy specifically designed for such work). The contractor removed the waterproofing from the building's roof to continue executing work. Winter season arrives and as a result of rainfall, damage occurs to the building and even to residents' contents. This is a classic case for a property damage insurance claim, right? Well, apparently not. The fact that it rained in winter was foreseeable. And the insurance company has every reason not to compensate for the damage. See article on difficulties in insurance coverage for winter natural damages, considered as foreseeable damage in Tama 38 and also: recommendations for winter preparedness in construction projects.
Hot Work Procedures – In addition to the above, hot work is frequently performed at construction sites and sometimes fires and severe damages occur. In policies common in Israel, the contractor is required as a risk mitigation measure to maintain 'hot work procedures'. See below an introduction and examples on this important topic, where non-compliance can lead to reduction of insurance benefits, up to denial of insurance coverage. See comprehensive article on hot work procedures. See also examples of hot work procedures from various insurance companies.
We have a diverse 'toolbox' and exclusive advantages for you
We provide you with a diverse 'toolbox' and exclusive advantages through which we formulate contractors' work insurance and related coverages with broad insurance coverage at minimum cost!
Let's start with the greatest advantage – experience! Over 30 years of our involvement in construction industry insurance has taught us how to build a policy that provides optimal insurance coverage. Building contractors' work insurance - (including Chapter A property insurance) - is all done from a comprehensive view of the project and not 'just' the property involved. Only this way can we understand all the risks and how to avoid them or insure them appropriately.
The second advantage is the enormous investment we dedicate: to gathering information about the project with the help of insurance experts in the construction industry, to characterizing the project's uniqueness (no two construction projects are alike), to preparing a list of expected risks (and the 'unexpected' ones that our rich experience has taught us to be wary of) and more. Based on all these - creative solutions are formulated to handle policy limitations and exclusions and to obtain the extensions required for optimal insurance coverage for you.
✔ A truly extended policy. Insurance company underwriters have learned over the years to recognize the quality of our work and the paths we've paved to bridge between your need for insurance coverage against a wide range of risks, and their concern about issuing you a policy (because of those same risks). The bottom line - thanks to this collaboration we create optimal insurance coverage for you.
✔ Minimum cost. We can significantly reduce insurance costs while maintaining the high level of the insurance arrangement for you.
✔ The experts on your side. A leading agency isn't just about size or experience but also work processes that operate in your favor. Thus, when an insurable event occurs, we establish a team of experts: insurance adjusters, surveyors, engineers, and when necessary, we also conduct accident investigations through experts and those experienced in the field - all to provide you with maximum protection and exhaust all your rights as they emerge from the policy.
