Comprehensive Engineering Insurance Solutions for Construction and Infrastructure Projects
Professional risk management and engineering oversight under the supervision of Itzik Simon, an expert in construction and engineering insurance, supported by a dedicated engineering department specializing in on-site project assessment.
Contractors' All Risks (CAR) Insurance is a comprehensive engineering insurance policy designed to provide broad protection for contractors, developers, subcontractors, and project owners. The policy covers sudden and unforeseen physical loss or damage to the construction site, the works under construction, building materials, and construction equipment throughout the execution period. It also provides liability protection against third-party claims and covers bodily injury claims arising from workplace accidents involving employees on the construction site.
The Advantage of a Dedicated Engineering Department
One of our most significant advantages, alongside our extensive experience and multidisciplinary expertise, is that at Itzik Simon Insurance Agency you benefit from the support of a dedicated engineering department led by Omri Nisani, a civil engineer and licensed insurance broker.
Our engineering department develops practical and tailored insurance solutions based on the various construction methods used throughout Israel and on extensive real-world experience with the risks associated with each. When insurance companies impose underwriting restrictions, require additional conditions, or disputes arise following an insured event, our engineering expertise becomes an invaluable asset for our clients.
Whether adapting insurance coverage to a specific construction methodology to secure the most appropriate policy or analyzing an insurance claim from both legal and engineering perspectives, our team provides a level of technical insight rarely found in traditional insurance agencies.
Contractors and developers who work with us benefit from an insurance agency that speaks their language, clearly explains complex insurance issues, and fully understands the operational risks and commercial challenges they face.
This complements our greatest strength: we focus almost exclusively on construction insurance, product liability insurance, and professional liability insurance for contractors and developers. Our team includes highly experienced insurance brokers, attorneys, civil engineers, and construction insurance specialists. We are intimately familiar with Israel's construction industry, review technical specifications on a daily basis, and have accumulated countless hours of practical experience on construction sites of every size across the country.
Who Needs Contractors' All Risks Insurance?
Whether constructing a residential high-rise, delivering a national infrastructure project, or carrying out complex building extensions, every construction project exposes developers and contractors to substantial financial risks. In many cases, a Contractors' All Risks policy is also a mandatory requirement for obtaining bank financing or project funding.
This insurance is specifically designed for:
Real estate developers and project owners seeking to protect their financial investment against losses that could jeopardize the project.
Main contractors and design-build contractors responsible for the overall management and execution of the construction project.
Subcontractors performing work on the construction site who may sustain losses or become legally liable for damage caused during their operations.
Looking for insurance specifically for renovation or interior finishing works? Please visit our dedicated Renovation Contractors Insurance section for coverage tailored to renovation and finishing contractors.
Contractors-all-risks-insurance for all types of projects and construction
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The Three Essential Sections: What Does Contractors' All Risks Insurance Cover?
A standard Contractors' All Risks (CAR) insurance policy consists of three core sections that provide comprehensive protection for the construction site:
Section I: Material Damage (All Risks)
This section covers physical loss of or damage to the insured property that is sudden, accidental, and unforeseen during the construction period.
What is covered?
The permanent works
Temporary structures and site facilities
Construction materials stored on site
Construction machinery, plant, and heavy equipment
Debris removal costs following an insured event
Covered risks include:Fire, explosion, lightning, flood, storm, earthquake, burglary, theft, and damage resulting from construction errors, workmanship defects, or collapse.
Section II: Third-Party Liability
Construction sites present significant risks to the public and neighboring properties. This section provides legal liability coverage against claims for bodily injury or property damage suffered by third parties as a direct result of the construction activities carried out on or near the site. An example would be damage to an adjacent building caused by excavation or foundation works.
Section III: Employers' Liability
This section protects the contractor and the project owner against liability claims brought by employees who suffer work-related injuries on the construction site. Coverage extends to employees of subcontractors, laborers, and site management personnel, providing protection beyond the statutory benefits payable by the National Insurance Institute.
Essential Policy Extensions and Additional Coverages You Shouldn't Overlook
A professional insurance broker is distinguished by the ability to tailor an insurance policy to the unique risks of each project. To eliminate potential coverage gaps, we recommend incorporating the following essential extensions:
1. Extended Maintenance Period
Provides cover for physical loss or damage that occurs or is discovered after the project has been handed over, during the contractual maintenance or defects liability period, including repair and remedial works carried out by the contractor.
2. Advance Loss of Profits (ALOP) / Delay in Start-Up (DSU)
Protects project owners against financial losses resulting from delays in project completion caused by an insured physical loss. Coverage may include loss of rental income, additional financing costs, increased interest expenses, and other consequential financial losses arising from the delayed completion of the project.
3. Existing Property and Property Being Worked Upon
Provides coverage for damage to existing buildings or property owned by the project owner on, within, or adjacent to which the construction works are being carried out.
4. Primary Insurance Clause
A policy provision establishing that the Contractors' All Risks policy responds on a primary basis before any other available insurance, helping to prevent disputes over contribution between insurers and minimizing subrogation issues.
Why Choose Itzik Simon for Your Contractors' All Risks Insurance?
For more than four decades, Itzick Simon Insurance Agency has been one of Israel's leading specialists in construction and infrastructure insurance.
We do not believe in "off-the-shelf" insurance policies. Our multidisciplinary team—comprising highly experienced insurance brokers, attorneys, and a dedicated civil engineer—enables us to thoroughly analyze construction contracts, technical specifications, tender documents, and lenders' insurance requirements before designing a policy that truly reflects your project's risk profile.
We structure insurance programs with carefully tailored limits of liability, optimized deductibles, and specialized engineering and legal support, ensuring that our clients receive expert guidance not only when purchasing insurance but also when managing complex claims with Israel's leading insurance companies.
Need More Information?
Our team of construction insurance specialists is here to help. We would be pleased to discuss your project and design the insurance solution that best protects your investment.
Frequently Asked Questions and Answers about Contractor Work Insurance
When is it recommended to take out the policy and what is the insurance period?
The policy must be taken out before the physical work on the site begins, including fencing, excavation and backfilling. The insurance period coincides exactly with the project schedule, from the date the work begins until the date the structure is handed over to the client or a completion certificate (Form 4) is received, whichever is earlier. The policy can be extended if there are delays in execution.
What is the difference between contractors insurance and contractor work insurance?
While "contractors insurance" is a general term that represents the full range of business protections, including general contractor third-party insurance, mobile home insurance, property insurance, and more, contractor work insurance is a specific, project-specific policy tailored around a specific construction site and covers all engineering risks of that specific project only. For information on cosmetic work and renovations that are not construction from scratch, visit our dedicated page for renovation contractor insurance.
Who should pay for the policy – the developer or the contractor?
There is no fixed law, and this is determined within the framework of the commercial contract between the parties. In many projects, the developer or the work customer prefers to purchase the policy himself in order to control the limits of liability and ensure that the coverage includes all subcontractors and protects him fully. In other cases, the obligation falls on the main contractor as part of the project costs. In any case, the policy must include both parties as insured.
What are the deductibles accepted in this policy?
The deductible varies depending on the nature of the risk and the size of the project. Typically, separate deductibles are set for natural damage and earthquakes, usually as a certain percentage of the insurance amount, lower deductibles for general property damage such as fire and burglary, and dedicated deductibles for third-party and employers' liability. The Itzik Simon Agency works to reduce the amount of deductibles to the minimum possible with insurers.
Does a contractor's work policy cover construction defects or poor planning?
As a rule, the policy covers accidental physical damage and not "bad workmanship" or wear and tear. However, it is possible and even mandatory to add special extensions such as coverage for damage due to poor design or defective materials, according to the DE3 or DE4 formulas accepted in the market, which exclude the specific part that was defective but cover all consequential damage caused to the rest of the project as a result.
Insurance for contractor work tailored to the project, area, and real risks
Proper construction insurance is not built according to a fixed template. It must be tailored to the nature of the project, the construction method, the identity of the contractors and developers, the requirements of banking support, third-party risks, and the engineering complexity of the site.
At Itzick Simon Insurance Agency, you receive a combination of deep insurance expertise in the construction industry and a professional engineering team that knows the area. This way, you can build a more accurate policy, reduce coverage gaps, and know that there is someone who is with you even in real moments.
Examples of projects we have secured
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