Articles and important information in the field of construction insurance

After years in which safety in the construction industry was seen as an operational matter that belonged mainly to the field, the new safety reform changes the rules of the game.

There are moments when an entire industry is forced to stop, examine itself, and realize that the rules it has relied on to this day are no longer sufficient. The IRMI CRC 2025 conference, held this year in Indianapolis, was one of those moments.

The year 2025 was not a year that could be considered in purely professional terms.
It opened and continued in the shadow of an ongoing war, unprecedented security events, and the eager wait for the return of the kidnapped.

When an employee does not have a pension fund from the first day of employment, the employer reluctantly becomes the one who insures the employee with life insurance, survivors' pension, and disability insurance.

The Israeli construction industry is in a period of upheaval - regulatory, insurance and social. Against the backdrop of the increase in accidents, changing safety regulations and challenges facing reinsurers, a conference on insurance, safety and risk management in the construction industry was held - initiated by Itzik Simon - the leading construction insurance agency .

In times of emergency and war, which unfortunately frequently afflict our country, businesses in Israel suffer direct and indirect damage, and sometimes even a complete shutdown of business activity .

Many apartment owners in Israel discover in the moment of truth what they were not told in advance: The standard apartment insurance policy in Israel – structure and contents – does not cover damage caused as a result of war.

In the current security situation in Israel, contractors and developers might well face a predicament if a construction site is damaged by an act of war. This is especially relevant since the government has now declared a state of emergency and so damage by rocket attacks from Iran is automatically considered to be war damage. The ramifications of this on contractors and developers, the project insurance, the rights of residents in National Outline Plan 38 projects and the relations with the authorities are complicated and need to be addressed wisely, responsibly and with compassion.

How does the construction industry prepare for summer? Read important rules and learn about the dramatic number of workers who lose their lives (!) every year around the world due to heat stress

A workforce crisis, security constraints, and countless other challenges. 2024 was not an easy year for the construction industry, but the "engine of the economy" continues to race and also records quite a few achievements and successes. Below is a brief overview of the quarterly report of the Israel Builders Contractors Association, which was recently published and deals not only with the last three months of the year but also constitutes a summary for 2024.

In May 2022, when the Director General of the Prime Minister's Office was tasked with formulating a long-term rehabilitation plan after an earthquake (Government Decision No. 1523), no one imagined that the government ministries would draw up raw material for dealing with a real and tangible disaster that would hit Israel, in the events of October 7th.

Contractors' insurance often also includes insurance coverage for a "maintenance period" after delivery. What is that "maintenance period", when is it valid and when (really) not?

Like the rest of the economy, the renovation industry has undergone a real shake-up in the past year. But unlike other industries that are still licking their wounds, will they actually make lemonade out of lemons here?

Is receiving Form 4 sufficient reason to waive the extension of expired contractor work insurance? This is briefly discussed in the article before you, and first an example based on a real case (with the necessary changes to maintain confidentiality).

2025 is here and it's a great time for our annual article that attempts (and usually succeeds) to trace key challenges facing the construction insurance industry as the new calendar year approaches.

Attorney Natalie Shimon-Weinstein, CEO of the Renovation Contractors Association, in an exclusive interview with the Itzick Simon Agency about the challenges of the industry in the shadow of the war, including insurance aspects.

From Hurricane Katrina to rising sea levels in Haifa, climate change is changing not only our environment but also the world of construction insurance. Which way does the wind blow (literally)?

Last Passover Eve, a report was submitted for government approval that deals with the long-term rehabilitation of areas after a disaster.

This week, a conference was held at the Cameri Theater in Tel Aviv to mark the 100th anniversary of the passing of the revered Czech-Jewish writer.

Is a business owner who employs illegal immigrants who become terrorists liable for indictment or even a civil lawsuit from the victims? What does the incident mean for various employers in the construction industry and do they have insurance protection against any proceedings that may be taken against them?

The change in perception of reinsurers abroad, which began in 2019 and continues to dictate the agenda, greatly affects developers and contractors who seek to issue proper, accurate, and effective construction work insurance.

The renovation industry experienced a deep and tangible crisis following the war, from a lack of orders for new projects to projects that were completely halted or significantly delayed.

The rocket barrages are relentless and reach every point on the map. Unfortunately, we are also counting quite a few direct hits on buildings.

One of the initial and immediate effects of the war situation is the immediate freeze on the construction industry at a level we have never seen before.

Throughout the world, the original goal of urban renewal is to prevent the self-collapse of dangerous buildings and/or increase resistance to earthquakes. In Israel, the issue takes on a different meaning.

The shutdown of the construction industry has led to a situation where thousands of sites stand desolate and abandoned. Without worker movement, sometimes without proper security, and possibly even without adequate and comprehensive fencing.

Extension of construction insurance - don't wait until the last minute. Read how changes in the world of construction insurance affect the extension of policies and challenge contractors/developers.

Contractors' Insurance in 2023 and What's in Store for Us in 2024 

 The world of construction insurance has undergone quite a few upheavals in recent years, many of which have been felt more intensely in Israel. Just before the 2023 summary, we will take a brief but focused look.

The increasing involvement of reinsurers in construction projects in Israel requires increasing attention to their strict requirements in issuing contractor policies. Read here

A passerby claims he was injured because of the construction work you carried out? Don't rush to admit it. Attorney Shikma Halevi from our legal department explains why admitting it could get you into trouble with the insurance company.

When does an insurance claim expire and did you know about the difference between property and bodily injury claims? Read about the statute of limitations in contractor work insurance and professional liability and product liability insurance.

 Groundwater Degradation – Insurance Issues: A Series of Articles Analyzing the Topic 

 Fourth article in the series

 How do you properly manage insurance risks when the construction site is expected to deal with groundwater?

The field of contractors' insurance in Israel has been going through a real upheaval for about two years, and all those involved in the industry are feeling the "blow" well. Contractors are having a hard time obtaining contractor work insurance for projects, and even when they do manage to purchase a policy, they find that prices have almost doubled on average between 2019 and 2021 (experts believe that the hand is still outstretched).

Section 328(a) of the National Insurance Law allows the National Insurance Institute (NII) to claim compensation from insurance companies when it is obligated to pay benefits and there is a cause of action against them as a third party.

Groundwater Degradation – Insurance Issues: A Series of Articles Analyzing the Topic 

 Third article in the series:

 Dealing with groundwater on construction sites in Israel entails engineering challenges at the planning and execution levels, as well as many issues from the world of construction insurance.

Engagement between contractors and freelance professional workers is a common phenomenon in the construction industry in Israel. On many sites, you can find independent foremen, freelance project managers, independent subcontractors, construction engineers, and more.

Independent renovation contractors, like many business owners, are unfortunately unaware of all the important nuances related to pension and other insurance.

Experience shows that many of them do not make regular retirement contributions at all, even though this is a legal obligation (as we will expand on immediately), and even when they retire "and fulfill their obligation," they do so on the basis of a salary that is dramatically lower than their real income.

The Renovation Contractors Association was founded in 2001 by Eran Sib, chairman of the association, and other renovation contractors in order to protect the renovation industry in Israel, to establish the rights of those involved in the industry, and to raise the profile of the renovation industry.

Groundwater Degradation – Insurance Issues: A Series of Articles Analyzing the Topic

Second article in the series: Common methods for groundwater dewatering and the difference between piles and a slurry wall.

What are the common methods for lowering groundwater on construction sites and what is the difference between piles and a slurry wall? How do you make sure the site is properly secured and what should you be careful of?

For about two years, the Ministry of Economy has been examining the formulation of new regulations that entail a real revolution. At their center is a dramatic expansion of the chain of responsibility for work accidents.

Groundwater Degradation – Insurance Issues: A Series of Articles Analyzing the Topic 

 First article in the series: Groundwater Degradation – Introducing the Issue

 Groundwater depletion is a common practice in Israel that refers to the artificial regulation of groundwater levels at construction sites.

The construction industry in Israel is made up of various types of players offering a variety of services. Within this setting, there are a number of companies operating in the country that offer both contracting, planning, and supervision under one roof (literally).

Although the law is very clear on the matter, there are structures in Israel that are delivered before Form 4. What is the insurance significance derived from this?

Construction times in Israel are getting longer. Does this have an impact on project insurance with a contractor policy and how can this be dealt with?

A Palestinian worker employed without a permit at a construction site in Israel was injured in a work accident. Will the contractor/developer be insured under the contractor's policy against this incident? Read here

Case study: A tile that broke off from the eighth floor of a building seriously injured a 5-year-old child. What is product liability insurance and how might it help in the aforementioned case?

Contractors' insurance is a legal contract where every word is decisive. Read an important article on the subject, which also includes examples from construction sites.

Construction insurance engineering is a methodology that combines insurance knowledge with field engineering experience. A combination of arms that constitutes a significant advantage for both contractors/developers and insurance companies.

The cost of insurance paid by contractors in the State of Israel has increased on average since 2019, that is, before the Corona era, by about 100 percent, sometimes even more - this is according to a study conducted by the Itzick Simon Construction Insurance Agency.

In the last two years, dramatic changes have occurred in the global construction insurance market, which also directly affect the Israeli insurance market.

Insurance for the construction, establishment and renovation of electrical and communications infrastructure is insurance for contracting work for complex projects such as the construction of high-voltage lines, the construction of urban, industrial and transportation power lines, the deployment of optical fibers, the maintenance of electrical and communications lines.

The end of the year is approaching, and it's time to pay attention to a number of important points and their potential impact on your company in the coming year.

The Israel Builders Association and the Histadrut estimated that the scope of claims by workers in the construction industry against their employers reached a whopping sum of about 6 billion shekels about five years ago.

A construction site is a complex with countless flammable materials and accessories that can be used as "combustion material." Notable examples of this are boards that have been oiled for quick disconnection, which any slight spark could ignite, and of course, sealing work that is carried out using heat and even with open fire.

Hot work is an integral part of the ongoing activity on construction sites. In light of the risk inherent in it, especially when it is not performed with the requisite care, insurance companies also include details of a " hot work procedure " in the contractor's work insurance policy.

"It's autumn with the cloud." Every year with the arrival of autumn, there are two basic assumptions that are indisputable. The first is that we don't know what kind of winter we are likely to have (rainy or mild) and the second is that it is difficult to predict powerful and extreme storms except a few days before they occur.

The issue of safety at work is a top priority on all of our agendas.

The issue is discussed every day, at least once a day, in all industries and sectors, and especially in the contracting industry.

Governments, authorities, organization managers, and more in Israel and around the world have set themselves the goal of fighting 'with all their might' against occupational accidents...

In the past two years, there have been many changes and updates in the construction insurance market in Israel. Changes that were influenced quite a bit, and perhaps mainly, by the conduct and decisions of reinsurers abroad...

In recent years, we have witnessed updates and changes in the world of construction insurance that make the processes with insurance companies complex and challenging. Among other things, we see a dramatic increase in prices, difficulty in obtaining insurance coverage .....

The pandemic exception in a contractor's policy essentially concerns the liability sections of the contractor's policy: third party and employer liability. It is derived from the fact that to the extent that a person becomes infected with the coronavirus on the construction site....

The need for a quality management system in construction stems from the extent of failures and the low efficiency and scope of the workforce on site. As a matter of fact, the knowledge of those involved in the field in all aspects of execution is partial and not up-to-date....

Construction insurance poses many challenges when there are gaps in professional knowledge between insurance experience and expertise on the one hand, and engineering knowledge on the other. These gaps can sometimes impair the quality of service – both for the customer and the insurance companies.

One of the well-known phenomena in the construction industry is the high presence of freelancers such as project managers, foremen, and recently also safety assistants.

Dealing with water is a dramatic issue in the construction industry. Both in terms of groundwater "waiting" for a project underground, and surface runoff and rainwater (which we have discussed quite a bit on our website...

One of the well-known phenomena in the construction industry is a situation where, even though the work on the project has been completed and the building has received Form 4, not all of the apartments/properties have been marketed and delivered. The reasons for this can be many and varied.

Dear contractor, is the contractor's insurance taken out by the client? Does the client charge you for the insurance costs? We have prepared a list of 10 requirements that must be met to protect your interests in this situation.

As is known, the responsibility for ensuring compliance with safety regulations on the construction site, as well as their implementation on the ground, concerns everyone on the site, even if they are not a direct employee of the main contractor, but – for example – an employee of a subcontractor.

Tower cranes are part of the landscape at construction sites in Israel, and it is unfortunate to know that they are considered the most dangerous of engineering tools.....

Signage in the construction industry, is there insurance? The construction industry requires a wide variety of signage solutions. However, despite these potentially dangerous measures, coverage for signage is not always included by default in various insurance policies....

The Haifa District Court awarded compensation of approximately 7 million shekels to a construction worker in his 40s who fell while working from a height, resulting in severe bodily injuries.

Every month, every employee sets aside a significant amount from his salary for the National Insurance Institute (NII). The set aside amount is intended - among other things - to allow the National Insurance Institute to assist him in the event that he is injured in a work accident.

The liability of the contractor/developer under the Defective Products Liability Law establishes strict liability of the manufacturer (and in our case: the contractor/developer) for bodily harm caused as a result of a defect or deficiency in the structure.

Last May (15.5.19), the Capital Market, Insurance and Savings Authority (hereinafter "the Authority") published the Circular on Approval of Insurance, which is of great significance to the insurance industry in general and to contractor work insurance in particular...

Physical violence is not uncommon in the construction industry. We were only recently exposed in the media to the shocking stabbing of a man by his fellow workers, and of course we are all familiar with the strikes of construction inspectors who suffer a dangerous escalation in violence against them.

The construction industry employs over 10,000 foreign workers each year, who come to Israel for various periods under a series of international bilateral agreements (mainly with China and countries in Eastern Europe).

The blood of foreign construction workers has been spilled time and again on Israeli work sites. This court alone has heard many claims over the years due to such work accidents" (from the ruling).

Construction sites regularly invite subcontractors who come through the site gates. Often, these contractors bring tools, heavy equipment, vehicles, and equipment to the site. If any damage occurs to these tools...

It's become commonplace. The media is full of stories about homeowners who got into trouble after embarking on a major renovation adventure without following a few very basic rules.

Two central points underlie tort law in Israel. One is that the injured party is entitled to compensation for the wrong done due to the injury, and the second is that compensation is intended to "restore the situation to its former state"...

2019 has just begun. This is an excellent time to emphasize an important trend, both Israeli and global, concerning the construction insurance industry, and which concerns the dramatic changes expected in the field (while tracing their sources).

2018 began with many question marks regarding the direction the real estate market is heading, mainly in light of the many developments in connection with the "Price for Tenants" auctions, and the uncertainty regarding the level of impact of the program on housing prices over time.

Contractors and developers are exposed to criminal proceedings. Contractors' insurance, when expanded accurately and correctly, includes a substantial extension regarding defense expenses in criminal proceedings.

The following situation is familiar to every contractor or entrepreneur in Israel. As part of ongoing construction work, there is a consistent movement of subcontractors to the site, bringing with them equipment and tools on the one hand, and various workers on the other.

Upon completion and delivery of a construction project, including partial delivery, the policy you purchased for contractor work insurance ceases to serve as insurance protection, except for a defined maintenance period at a specified time.

One of the common phenomena regarding professional liability insurance for those engaged in the planning and engineering professions is that they purchase it only upon contractual requirement.

Contracting work on a construction site naturally requires the use of facilities, tools, and engineering mechanical equipment (EME). It is therefore important to understand the insurance aspects related to these tools and EME.

Interview with Itzik Simon on the home page regarding rural construction insurance

The unfortunate and tragic work accident led to compensation of over 7.3 million shekels. Approximately 5.8 million shekels were paid in pensions by the National Insurance Institute....

Those who wander around European cities are often amazed by the orderliness, cleanliness, investment in environmental design, and the clean and tidy markets, as if they were a luxury supermarket.

We are pleased to present the cooperation we have formed with Broadspire Israel, a company that manages third-party claims...

Responsibility for the proper functioning of the cranes lies directly with the construction contractors and engineers who inspect them, not with the construction site managers.

Although your contractors all risks insurance policy covers cases of burglary and sometimes theft, it turns out that the issue is not "black and white" and there are many influencing factors that must be taken into account...

Professional liability insurance for the engineering, architecture and planning industries is designed to provide insurance coverage to the professional against claims related to breach of duty...

An insurance policy for contractor work covers this type of damage. After all, why did you take out contractor insurance if not for this? And yet, there are nuances and matters here that require control and supervision...

During June 2017, an amendment to the Law to Increase Enforcement of Labor Laws 2011 was published, authorizing labor inspectors to impose financial sanctions for...

One of the common mistakes in contractor insurance policies is related to damage caused to neighboring third-party structures during the execution of project work...

TAMA 38 insurance for structural reinforcement is affected by the natural phenomena that characterize the winter season more than any other urban renewal insurance policy...

Have you ever encountered the demand of the engineers who inspect the cranes for you to sign a document exempting you from liability and indemnifying the contractor?

Many construction companies and contractors are often required to perform small jobs on a random and occasional basis. These are jobs that are often carried out "under the radar."

Contractors insurance requires careful attention to many issues that must be taken into account when drafting an accurate contractors all-risks policy...