Insurance smr. Insurance of construction and installation risks: civil aspect Contract of insurance of construction risks

Typically, a construction and installation insurance contract covers a large number of individual risks, the inclusion of each of which in the scope of insurance coverage significantly increases the likelihood of an insured event occurring. Therefore, it is understandable that there are no rigid tariffs in line with international practice, and insurance premium rates are set individually for each risk based on the insurance company’s own experience. However, the following insurance premium rates for construction and installation insurance are indicative for the Russian market: for the construction of residential and administrative complexes - 0.2-0.3% of the contract value (for the entire construction period specified in the contract ); during the construction of medical institutions and hotels - 0.3--0.456; during the construction of engineering and manufacturing industry facilities - 0.35--0.45%; during the construction of oil refining and petrochemical industry facilities - from 0.4%; during construction of an energy facility - from 0.5%.

When insuring construction and installation risks, a deductible is usually applied. Its value for each risk is indicated in the policy.

The insured amount is usually the full cost of the insurance object, including the cost of design, technical documentation and labor. Property in respect of which an insurance contract is concluded is considered insured, as a rule, from the moment of unloading it at the construction site (but not earlier than the date specified in the insurance contract), during the entire period of construction, installation, dry and working tests - until the moment of delivery object into operation, but no later than the date specified in the insurance contract. The relationship between the parties upon the occurrence of an insured event basically corresponds to the provisions in force for other types of insurance. The amount of insurance compensation for lost property is limited to the cost of its replacement or the actual value at the time of the insured event (usually depending on which amount is less).

The insurer has the right to refuse compensation for a loss if the policyholder provided incorrect information to assess the risk, did not notify the insurer about significant changes in the risk, did not report the occurrence of an insured event within the agreed time frame, or prevented the participation of the insurer's representatives in determining the circumstances, nature and amount of the loss, not submitted the documents necessary to establish the loss.

The basis for determining the insured amount is the contract cost of construction and installation work. The basis for its calculation is the estimated cost. Typically, insurance amounts are set as follows:

* for construction work - based on the full design (estimated) cost of construction work upon completion, including the cost of materials, wages, transportation costs, customs duties, fees, as well as the cost of materials and building elements supplied by the customer;

for installation work - based on the full design (estimated) cost of each insurance object after completion of installation, including transportation costs, customs duties, fees and installation costs;

for equipment - based on the actual cost of construction site equipment or construction machinery and equipment.

The insured amount may include the costs of clearing the area. Their value cannot exceed 2-5% of the insured amount for insurance of construction and installation works.

The principle of underinsurance is extremely rarely used in this type of insurance. In the practice of Western insurers, the contract price is always used as the basis for determining tariff rates. However, it is recognized that some of the components of this price are not at the risk of the insurer, for example, the cost of preparing the project, the cost of insurance. However, on the other hand, the contract price alone does not fully represent the total insurable value, even at the final stages of construction or when most of the materials are stored on site. Therefore, sometimes the policyholder is interested in increasing the sum insured.

For example, it is proposed to “increase” the insured amount by including the cost of temporary structures. This includes the contractor's warehouses and offices, scaffolding, formwork and support (unless included in the cost of the work), cement mixers, tools and construction equipment that are the responsibility of the contractor and located on the construction site for the purpose of performing the contract. The insured amount may be increased by costs associated with the removal of construction waste. This important point is sometimes ignored when creating insurance coverage. Meanwhile, the removal of construction waste must be carried out before restoration of the damaged part of the facility can begin in the event of an insured event.

It is recommended to include in the insurance contract a special clause under the heading “Increase in the sum insured”, based on an assessment of the maximum possible loss. Typically this is 10% of the cost of structures, depending on the type of construction.

Approximately, the contract is concluded for the period of the planned construction period. What is an insured event? First of all, damage and destruction of objects under construction, equipment, machines, materials and other property located on the construction site, which occurred as a result of fire, accidents, natural disasters, consequences of dry and working tests of the object

Compensation is paid only for unforeseen losses associated with damage or destruction of construction projects and violation of the work schedule. Unforeseen are considered damages that could not be foreseen even if all preventive and protective measures were carried out at a good professional level.

Under the terms of construction risk insurance, the following are indemnified:

direct losses from total loss and damage to the insured property due to broken cables, falling building blocks, electrical failure, negligence of workers, natural disasters, fire, explosion, flooding, soil subsidence and any other unforeseen events within the construction site;

cleaning and salvage costs, i.e. clearing the territory after an insured event, repairing structures and equipment. There is a coverage limit here.

It is possible to expand insurance coverage for risks:

damage caused to construction by the activities of the subcontractor;

transportation of materials and structures;

damage to the environment, etc.

Extending coverage gives the insured the opportunity to compensate for damages for risks not directly related to construction, for example, when transporting materials and structures on ships and by land, due to excessively low pressure when transporting liquids, as a result of fire or explosion, theft, damage pipes containing electrical wiring in case of possible damage to the environment, for example, due to a defect in an oil pipeline.

Exclusions from insurance coverage:

compensation is never paid for construction defects. But if, due to such a defect, damage has occurred for which compensation must be paid, then excess costs to eliminate this defect are deducted from the amount of compensation;

in the absence of a special clause in the contract, the risks of damage occurring as a result of force majeure, interruption or cessation of changes in the groundwater channel during or after completion of construction, normal weather conditions for the area, the use of low-quality building materials and some others are not covered.

When liability risks are included in the insurance coverage, the insurance company may not agree to pay compensation upon the occurrence of an insured event and has the right to defend its client in court against unauthorized claims of a third party. An insurer acting in this way assumes the additional responsibility of protecting legal liability and assumes the risk of legal costs.

According to international standards, an “all risks” insurance contract for contractors is concluded for each individual contract. At the same time, insurers have the opportunity to study the plans and report on the construction site and take into account the characteristics of each risk. However, even this limited insurance control disappears when an annual open policy is issued, the demand for which is increasing.

The annual policy includes special guarantees and offers the following conditions:

Based on the estimated annual value of the contracts, a preliminary insurance amount is established. Based on 50% of this amount, the first insurance premium is paid - a deposit, the amount of which can be changed on the basis of the annual declaration of completed contracts.

Insurers must be made aware of the price of contracts and the content of the work before it begins, as well as the maintenance period. Likewise, the performance of each contract should be reported so that insurers have a rough idea of the overall exposure.

This “open” form of policy is only suitable if the work carried out is uniform in nature and, therefore, there is no need to check each contract. It is also common practice to set a cap on the contract price and exclude from coverage risky operations such as the construction of tunnels, bridges, foundations and work with a predominant exposure to water damage.

The construction process consists of the following main stages: design, construction and installation, trial operation and fine-tuning (testing), post-warranty period.

The first phase - design - is not covered by the construction and installation risks insurance policy. But if during the construction process or at subsequent stages an insured event occurs due to errors in the project, then the damage will be compensated by the company that insured the professional liability of the design company.

The insurance contract must indicate the period of construction work: the start and end dates, but the insurer’s liability begins at an agreed point in time, for example, at the time of unloading equipment, materials and semi-finished products onto the construction site, and ends when the facility is put into production operation, if the contract does not provide for another period.

In the insurance of construction works, installation insurance is distinguished, which has its own specifics. Typically, installation work is an element of construction, so most often construction and installation are combined under the single concept of “construction and installation work.” However, insurance for installation work has its own characteristics.

The period of trial operation and fine-tuning includes a trial run and testing in real conditions of all production units. This stage is considered particularly dangerous for insurers and usually lasts for one to two months.

The post-launch warranty period is determined separately for each construction element, indicating the date of complete completion of all work. The warranty period after acceptance of the work by the customer is usually 12 months for construction and installation work and 6 months for the construction of building shells. Insurance coverage for these periods can be provided by drawing up an independent contract or by introducing an additional condition into a general contract of the “all risks” type.

An addition to installation risk insurance is a supply guarantee agreement. This type of insurance is provided in two forms:

separate insurance policy for one machine or installation;

policy - a convention for all machinery and equipment supplied during the contract period.

The “supply guarantee” policy indemnifies direct material damage caused by:

errors and defects in the production process of equipment, which include errors in calculations during design, during manufacturing, defects during casting and defects in materials;

installation errors.

Exclusions from coverage include:

serial defect inherent in the entire batch of manufactured equipment;

errors, defects and defects that the recipient knew about before the occurrence of the insured event;

aesthetic damage that does not reduce the performance of the insured equipment;

* intentional actions or serious fault of the counterparty or policyholder.

Features of concluding and maintaining an insurance contract: the insured must first describe all construction work performed by him, indicating their cost, even if part of the work is performed by a subcontractor, all building materials, parts of the structure and auxiliary equipment used. If the contract is concluded for insurance of a construction site, then the costs of auxiliary buildings are included, for example, living quarters for workers, warehouses, garages, etc. For each of these points, the insured amount is determined and the insurance premium is calculated.

The amount of the premium is calculated on the basis of a premium calculation questionnaire drawn up by the insurer and filled out by the policyholder, which takes into account all types of construction work. At the end of the liability period, a recalculation may be made using the adjusted sum insured.

Depending on various circumstances that are significant for determining the degree of risk, the size of the tariff rate for a specific insurance contract may change based on increasing (from 1 to 5) and decreasing (from 0.2 to 1) coefficients.

The policyholder must notify the insurer of all changes in the assessment of the degree of risk and the insured amount. If the value of these indicators increases, the insurer has the right to demand payment of an additional premium. If the policyholder refuses to pay the premium, the insurer may terminate the contract from the moment new circumstances arise that affect the degree of risk and the increase in the sum insured, returning to the policyholder the amount of premiums for the unexpired period of the contract minus the overhead costs of the insurance company. If for any reason one of the parties intends to terminate the insurance contract, then it must notify the other party of this at least 30 days before the planned date, unless the contract provides for other termination conditions.

insurance construction installation risk

Insurance of construction and installation risks in Russia is currently not very popular. But the construction boom of recent years is still forcing construction firms to increasingly turn to insurers.

Insurance of construction and installation risks: civil aspect

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Insurance of construction and installation risks in Russia at the moment, unfortunately, is not a popular way to protect the interests of participants in construction contracts or the interests of third parties. But the construction boom of recent years and, accordingly, the increase in the number of potential insurance cases still force construction companies to increasingly turn to this type of insurance.

Insurance of construction and installation risks (CEM) is quite widespread in Russia, although it lags significantly behind the level of such insurance in Europe and North America. However, until now, the civil legal aspects of construction and installation insurance contracts have not yet been the subject of special scientific research.
Construction and installation risks insurance is a special type of comprehensive insurance, which usually covers insurance of a facility under construction, the safety of construction equipment and civil liability of construction organizations for damage caused to third parties. In some cases, such an agreement also includes insurance of business risk in terms of non-receipt of the expected income. Sometimes insurance is provided for so-called associated risks, for example, construction materials in warehouses serving a specific construction site, vehicles and other special equipment (cranes, bulldozers, etc.), civil liability that may arise from their use.
From the point of view of civil law, a construction and installation work contract is a complex contract, consisting in fact of several simple insurance contracts for certain types of risks: a property insurance contract, a civil liability insurance contract and a business risk insurance contract. This, in turn, means the extreme complexity of the legal regulation of this type of insurance.

Subject of the construction and installation work agreement
The subject of the contract is a relationship in which one party (the insurer) undertakes, for the payment stipulated by the contract (insurance premium), upon the occurrence of an event stipulated in the contract (insured event), to compensate the other party (the policyholder) or another person in whose favor the contract was concluded (the beneficiary) losses caused as a result of this event in the insured property or losses in connection with other property interests of the insured (pay insurance compensation) within the amount determined by the terms of the transaction (sum insured). The construction and installation insurance contract is one of those rare types of insurance contracts, the subject of which can cover all types of property insurance, but, in any case, at least two of these types at the same time.
Property insurance contracts, even those related to construction, as well as liability insurance contracts for a construction organization should be distinguished from construction and installation insurance contracts. A qualifying feature of construction and installation works agreements is always the comprehensive nature of the protection they provide.

Subjects of the construction and installation work agreement
The subjects of such an insurance contract include the policyholder and the insurer.
The insured under construction and installation work contracts can be various legal entities and individuals. It should be taken into account that in terms of property insurance, the insured may, as a general rule, be persons who have an insurable interest, that is, an interest in preserving the relevant property based on a law, other legal act or contract. These can be construction organizations carrying out the construction of the object and its finishing. They may include general contractors and subcontractors, but the latter have the right to insure in their favor only that property that belongs to them by right of ownership or on the basis of an agreement (lease agreement, leasing agreement, gratuitous use). When the construction and installation insurance contract specifies a beneficiary who has an insurable interest in the insured property, then any person has the right to be an insured in this part (Article 930 of the Civil Code of the Russian Federation).
Strictly speaking, there are no formal restrictions regarding the circle of insurers when insuring civil liability of a construction organization, since by virtue of paragraph 1 of Article 931 of the Civil Code of the Russian Federation, under the contract of insurance of the risk of liability for obligations arising from causing harm to the life, health or property of other persons , the risk of liability of the policyholder himself or another person to whom such liability may be assigned can be insured. At the same time, since construction and installation work insurance refers to the insurance of risks arising during business activities, it is quite obvious that the insured will only be a legal entity that has the right to attribute the costs of paying for insurance services to economically justified costs, that is construction organizations themselves and vehicle owners.
According to paragraph 1 of Article 933 of the Civil Code of the Russian Federation, under a business risk insurance agreement, under the threat of the nullity of this transaction, the business risk of only the policyholder himself can be insured and only in his favor. In other words, when business risk insurance is included in the construction and installation insurance contract, the insured under such a contract as a whole can only be a construction organization as a business entity.
In practice, complex questions often arise about possible insureds under construction and installation work insurance contracts. There is an opinion that customers can act as such without any restrictions. This point of view requires further research. The fact is that under a regular construction contract, the risk of accidental destruction or accidental damage to the construction project that is the subject of the construction contract, before the acceptance of this object by the customer, is borne by the contractor (Clause 1 of Article 741 of the Civil Code of the Russian Federation). In addition, in accordance with paragraph 1 of Article 742 of the Civil Code of the Russian Federation, a construction contract may provide for the obligation of the party that bears the risk of accidental death or accidental damage to the construction project, material, equipment and other property used during construction, or liability for damage during construction construction of damage to other persons, insure the relevant risks. In other words, the legislator also indicates the contractor as a possible insurer. But if the terms of the construction contract provide for the phased acceptance of the construction project by the customer, then in this case he has a direct interest in the safety of the corresponding object. In addition, judicial practice currently deduces independent insurable interest from persons who do not bear direct losses in connection with loss or damage to property (see, for example, the precedent given in paragraph 4 of the Review of the practice of resolving disputes related to the execution of insurance contracts ( Information letter of the Presidium of the Supreme Arbitration Court of the Russian Federation dated November 28, 2003 No. 75) Of course, the customer, even if he does not bear the risk of accidental death or damage to the construction project, has an interest in its safety, since for What is important here is the timing of completion of construction work and, accordingly, the timing of receiving income from the funds invested in construction. As for the safety of materials, equipment and machinery, the situation is less obvious, since all this, if necessary, can be replaced by the contractor quickly enough. It’s a different matter when We are talking about unique equipment (for example, a tunneling shield) or materials (for example, columns or other elements made from solid pieces of granite or marble). Here, the customer has an insurable interest in their safety, since the loss, loss or damage of such equipment or materials can lead to a significant delay in construction time.
Only an insurance company or company that simultaneously has licenses for:
o insurance of property of legal entities, with the exception of vehicles and agricultural insurance (subclause 12, clause 1, article 32.9 of the Law of the Russian Federation of November 27, 1992 No. 4015-1 “On the organization of insurance business in the Russian Federation” (hereinafter Article 32.9 of Law No. 4015-1));
o insurance of civil liability for damage to third parties (subclause 20 of article 32.9 of Law No. 4015-1);
o insurance of business risks (subclause 22 of article 32.9 of Law No. 4015-1);
o insurance of land transport vehicles (except for railway transport vehicles) (subclause 6 of Article 32.9 of Law No. 4015-1);
o insurance of civil liability of vehicle owners (subclause 14 of Article 32.9 of Law No. 4015-1) or for that part of the listed types of insurance that forms the configuration of a specific insurance contract.
In a construction and installation insurance contract, there are sometimes several insureds at the same time - these are construction organizations that simultaneously carry out construction, installation or finishing work on one site. In such a situation, it is necessary to clearly define in the contract how insurance payments will be distributed upon the occurrence of an insured event. If the corresponding risks are insured under a co-insurance agreement, then several insurers act simultaneously on the insurer’s side (Article 953 of the Civil Code of the Russian Federation). It should be taken into account that if the contract does not define the rights and obligations of each of the insurers, then they are jointly and severally liable to the policyholder or beneficiary for the payment of insurance compensation.

Other subjects of insurance legal relations when insuring construction and installation work
In construction and installation work insurance contracts there may be beneficiaries in terms of property insurance if the insured is a person who does not have an insurable interest, but carries out insurance in favor of the contractor or customer. The appointment of this subject of the insurance legal relationship depends entirely on the will of the insured. At the same time, in terms of civil liability insurance, beneficiaries are appointed by law - they are always persons who may be harmed (clause 3 of Article 931 of the Civil Code of the Russian Federation).
If the civil liability of another person is insured, then another subject appears as part of the insurance legal relationship - the insured person. Based on the norm of paragraph 1 of Article 955 of the Civil Code of the Russian Federation, the policyholder has the right, unless otherwise provided by the contract, at any time before the occurrence of an insured event to replace the insured person with another, notifying the insurer in writing. The exercise of this right under the construction and installation work insurance contract is possible only if the contractor is replaced. If the contractor remains the same, then the policyholder can only demand termination of the contract in this part, however, there is legal uncertainty here, since the current legislation does not know the institution of termination of part of the contract. At the same time, there is no direct prohibition on this in the law. Therefore, based on the general principle of the modern Russian legal system, by virtue of which everything that is not prohibited is permitted, it can be argued that termination of a contract in a certain part is still possible.

Essential terms of the construction and installation agreement
In addition to the subject of the construction and installation insurance contract, it must necessarily agree on the object of insurance, insurance risks, insured amount and validity period (clause 1 of Article 942 of the Civil Code of the Russian Federation). The object of insurance in the legislation, as is known, is understood as certain property or other property interest. The construction and installation insurance contract must reflect all insurance objects - the property insured under this contract, the interest associated with the risk of civil liability, as well as the interest associated with the fear of not receiving the planned income. It should be especially noted that the description of the property can either include detailed lists of what is insured, or be reduced to an indication that any property of the corresponding type located on the construction site and other territory covered by the insurance policy is subject to protection.
Sometimes in practice the question arises about the possibility of insuring several construction projects located at different addresses under one construction and installation insurance contract. The law does not contain any obstacles to this.
Construction and installation insurance applies all known concepts for determining insurance risks: insurance against all risks, insurance against named perils, insurance against all risks with certain exceptions, insurance against named perils, except for those arising for reasons specifically specified in the contract.
The coverage area for the insured property and the coverage area for the risks of civil liability for causing harm to other persons may not coincide. As for the coverage area for the insured property, it can be either only a construction site, or a construction site and access routes for vehicles and special equipment, or the territory of a construction site, access roads to it, as well as a storage area for building materials and equipment located outside the construction site. It should be borne in mind that if the insured property is damaged or stolen from a territory that is not specified in the policy, for example, some materials were unloaded from the outside of the construction site fence, then this incident cannot be qualified as an insured event.
The parties to the insurance transaction have the right to limit the coverage area for the risks of civil liability to specific boundaries, for example, along the perimeter of a construction site, or not to introduce such restrictions. In the latter case, it is simply important to indicate that cases of damage to third parties during work directly related to construction or its maintenance are covered. When the territory of liability risk insurance is limited, this means that the insured event under the insurance contract will only be causing harm to other persons precisely in this territory. If damage is caused in connection with construction work outside the territory specified in the contract, then compensation for it is the responsibility of the construction organization itself.
The insured amount under the construction and installation insurance contract as a whole consists of the insured amounts for each of its sections - property insurance, liability insurance and business risk insurance. However, it is impossible to add up the specified insurance amounts, since each of them has its own special nature. At the same time, the insurance amount in terms of insuring the object under construction as property has an extremely important feature - after all, at the beginning of construction there is no insurance object itself, but only building materials. The cost of the object being built is, of course, higher than the cost of materials, since it also includes the cost of work. In addition, this cost will constantly increase. A complex legal problem may arise here - if you indicate the final cost of a standing object as the insured amount, then when an insured event occurs before the completion of construction, the real value of the object at the time of the insured event will be lower than the insured amount, that is, there are grounds to talk about incomplete property insurance. To avoid such a situation, in my opinion, it is advisable to determine the insured amount as the cost of the object under construction at the time of the insured event, but not higher than the final cost of this insurance object.
The insurance amount in terms of insurance against the risk of liability for causing harm to other persons is established by agreement of the parties to the contract; no restrictions on its amount are established in the law.
The insured amount in terms of business risk insurance, as well as when insuring property, should not exceed its actual value (insurable value). For these risks, this value is considered to be the losses that the policyholder could be expected to suffer if the insured event occurred.
Since construction usually takes a long period of time, the parties to an insurance transaction are often interested in determining the insured amount in hard currency. As is known, paragraph 2 of Article 317 of the Civil Code of the Russian Federation allows for the possibility of expressing obligations in currency equivalent, but the contract must clearly indicate that we are talking about an amount equivalent to a certain amount in foreign currency.

Validity period of the construction and installation insurance contract
The validity period of the insurance contract is determined by agreement of the parties to the insurance transaction. It can be equal to the construction period or defined as a calendar period, for example a year.
One of the common mistakes in this type of agreement is to indicate that the moment the agreement enters into force is the moment the construction work begins. However, this option cannot exist. In accordance with paragraph 1 of Article 425 of the Civil Code of the Russian Federation, contracts come into force from the moment of conclusion. For insurance contracts, paragraph 1 of Article 957 of the Civil Code of the Russian Federation introduced another option - insurance contracts, as a general rule, come into force from the moment the policyholder pays the insurance premium or its first installment.
Another typical mistake is to confuse the concepts of “validity of the insurance contract” and “insurance period”. The term of the contract is the period of time between the moment the contract comes into force and the moment of expiration of the period agreed upon by the parties. The insurance period is the period of time during which the insured event may occur. According to paragraph 2 of Article 957 of the Civil Code of the Russian Federation, the beginning of the insurance period may differ from the moment the contract enters into force, but under no circumstances can it go beyond the expiration date of the contract.
In accordance with paragraph 1 of Article 954 of the Civil Code of the Russian Federation, the construction and installation insurance contract, as in any other insurance contract, must determine the procedure and deadline for paying the insurance premium. If the terms of the transaction stipulate payment of the premium in installments, then, by virtue of paragraph 3 of Article 954 of the Civil Code of the Russian Federation, the contract may include a provision for early termination of the insurance contract at the initiative of the insurer in the event that the policyholder does not pay the next insurance premium on time.

S.V. DEDIKOV, member of the board of the Moscow Reinsurance Company

See other materials on this topic:

Construction and installation risks insurance is a special type of comprehensive insurance, which usually covers insurance of a facility under construction, the safety of construction equipment and civil liability of construction organizations for damage caused to third parties. In some cases, such an agreement also includes insurance of business risk in terms of non-receipt of the expected income. Sometimes insurance is provided for so-called associated risks, for example, construction materials in warehouses serving a specific construction site, vehicles and other special equipment (cranes, bulldozers, etc.), civil liability that may arise from their use.

From the point of view of civil law, a construction and installation work contract is a complex contract, consisting in fact of several simple insurance contracts for certain types of risks: a property insurance contract, a civil liability insurance contract and a business risk insurance contract. This, in turn, means the extreme complexity of the legal regulation of this type of insurance.

Subject of the construction and installation work agreement

Property insurance contracts, even those related to construction, as well as liability insurance contracts for a construction organization should be distinguished from construction and installation insurance contracts. A qualifying feature of construction and installation works agreements is always the comprehensive nature of the protection they provide.

Subjects of the construction and installation work agreement

The subjects of such an insurance contract include the policyholder and the insurer.

The insured under construction and installation work contracts can be various legal entities and individuals. It should be taken into account that in terms of property insurance, the insured may, as a general rule, be persons who have an insurable interest, that is, an interest in preserving the relevant property based on a law, other legal act or contract. These can be construction organizations carrying out the construction of the object and its finishing. They may include general contractors and subcontractors, but the latter have the right to insure in their favor only that property that belongs to them by right of ownership or on the basis of an agreement (lease agreement, leasing agreement, gratuitous use). When the construction and installation insurance contract specifies a beneficiary who has an insurable interest in the insured property, then any person has the right to be an insured in this part (Article 930 of the Civil Code of the Russian Federation).

Strictly speaking, there are no formal restrictions regarding the circle of insurers when insuring civil liability of a construction organization, since by virtue of paragraph 1 of Article 931 of the Civil Code of the Russian Federation, under the contract of insurance of the risk of liability for obligations arising from causing harm to the life, health or property of other persons , the risk of liability of the policyholder himself or another person to whom such liability may be assigned can be insured. At the same time, since construction and installation work insurance refers to the insurance of risks arising during business activities, it is quite obvious that the insured will only be a legal entity that has the right to attribute the costs of paying for insurance services to economically justified costs, that is construction organizations themselves and vehicle owners.

According to paragraph 1 of Article 933 of the Civil Code of the Russian Federation, under a business risk insurance agreement, under the threat of the nullity of this transaction, the business risk of only the policyholder himself can be insured and only in his favor. In other words, when business risk insurance is included in the construction and installation insurance contract, the insured under such a contract as a whole can only be a construction organization as a business entity.

In practice, complex questions often arise about possible insureds under construction and installation work insurance contracts. There is an opinion that customers can act as such without any restrictions. This point of view requires further research. The fact is that under a regular construction contract, the risk of accidental destruction or accidental damage to the construction project that is the subject of the construction contract, before the acceptance of this object by the customer, is borne by the contractor (Clause 1 of Article 741 of the Civil Code of the Russian Federation). In addition, in accordance with paragraph 1 of Article 742 of the Civil Code of the Russian Federation, a construction contract may provide for the obligation of the party that bears the risk of accidental death or accidental damage to the construction project, material, equipment and other property used during construction, or liability for damage during construction construction of damage to other persons, insure the relevant risks. In other words, the legislator also indicates the contractor as a possible insurer. But if the terms of the construction contract provide for the phased acceptance of the construction project by the customer, then in this case he has a direct interest in the safety of the corresponding object. In addition, judicial practice currently deduces independent insurable interest from persons who do not bear direct losses in connection with loss or damage to property (see, for example, the precedent given in paragraph 4 of the Review of the practice of resolving disputes related to the execution of insurance contracts ( Information letter of the Presidium of the Supreme Arbitration Court of the Russian Federation dated November 28, 2003 No. 75) Of course, the customer, even if he does not bear the risk of accidental death or damage to the construction project, has an interest in its safety, since for What is important here is the timing of completion of construction work and, accordingly, the timing of receiving income from the funds invested in construction. As for the safety of materials, equipment and machinery, the situation is less obvious, since all this, if necessary, can be replaced by the contractor quickly enough. It’s a different matter when We are talking about unique equipment (for example, a tunneling shield) or materials (for example, columns or other elements made from solid pieces of granite or marble). Here, the customer has an insurable interest in their safety, since the loss, loss or damage of such equipment or materials can lead to a significant delay in construction time.

Only an insurance company or company that simultaneously has licenses for:

insurance of property of legal entities, with the exception of vehicles and agricultural insurance (subclause 12, clause 1, article 32.9 of the Law of the Russian Federation of November 27, 1992 No. 4015-1 “On the organization of insurance business in the Russian Federation” (hereinafter Article 32.9 of Law No. 4015 -1));
insurance of civil liability for damage to third parties (subclause 20 of article 32.9 of Law No. 4015-1);
insurance of business risks (subclause 22 of article 32.9 of Law No. 4015-1);
insurance of land transport vehicles (except for railway transport vehicles) (subclause 6 of Article 32.9 of Law No. 4015-1);
civil liability insurance of vehicle owners (subclause 14 of Article 32.9 of Law No. 4015-1) or for that part of the listed types of insurance that forms the configuration of a specific insurance contract.

In a construction and installation insurance contract, there are sometimes several insureds at the same time - these are construction organizations that simultaneously carry out construction, installation or finishing work on one site. In such a situation, it is necessary to clearly define in the contract how insurance payments will be distributed upon the occurrence of an insured event. If the corresponding risks are insured under a co-insurance agreement, then several insurers act simultaneously on the insurer’s side (Article 953 of the Civil Code of the Russian Federation). It should be taken into account that if the contract does not define the rights and obligations of each of the insurers, then they are jointly and severally liable to the policyholder or beneficiary for the payment of insurance compensation.

Other subjects of insurance legal relations when insuring construction and installation work

If the civil liability of another person is insured, then another subject appears as part of the insurance legal relationship - the insured person. Based on the norm of paragraph 1 of Article 955 of the Civil Code of the Russian Federation, the policyholder has the right, unless otherwise provided by the contract, at any time before the occurrence of an insured event to replace the insured person with another, notifying the insurer in writing. The exercise of this right under the construction and installation work insurance contract is possible only if the contractor is replaced. If the contractor remains the same, then the policyholder can only demand termination of the contract in this part, however, there is legal uncertainty here, since the current legislation does not know the institution of termination of part of the contract. At the same time, there is no direct prohibition on this in the law. Therefore, based on the general principle of the modern Russian legal system, by virtue of which everything that is not prohibited is permitted, it can be argued that termination of a contract in a certain part is still possible.

Essential terms of the construction and installation agreement

In addition to the subject of the construction and installation insurance contract, it must necessarily agree on the object of insurance, insurance risks, insured amount and validity period (clause 1 of Article 942 of the Civil Code of the Russian Federation). The object of insurance in the legislation, as is known, is understood as certain property or other property interest. The construction and installation insurance contract must reflect all insurance objects - the property insured under this contract, the interest associated with the risk of civil liability, as well as the interest associated with the fear of not receiving the planned income. It should be especially noted that the description of the property can either include detailed lists of what is insured, or be reduced to an indication that any property of the corresponding type located on the construction site and other territory covered by the insurance policy is subject to protection.

Construction and installation insurance applies all known concepts for determining insurance risks: insurance against all risks, insurance against named perils, insurance against all risks with certain exceptions, insurance against named perils, except for those arising for reasons specifically specified in the contract.

The parties to the insurance transaction have the right to limit the coverage area for the risks of civil liability to specific boundaries, for example, along the perimeter of a construction site, or not to introduce such restrictions. In the latter case, it is simply important to indicate that cases of damage to third parties during work directly related to construction or its maintenance are covered. When the territory of liability risk insurance is limited, this means that the insured event under the insurance contract will only be causing harm to other persons precisely in this territory. If damage is caused in connection with construction work outside the territory specified in the contract, then compensation for it is the responsibility of the construction organization itself.

The insured amount under the construction and installation insurance contract as a whole consists of the insured amounts for each of its sections - property insurance, liability insurance and business risk insurance. However, it is impossible to add up the specified insurance amounts, since each of them has its own special nature. At the same time, the insurance amount in terms of insuring the object under construction as property has an extremely important feature - after all, at the beginning of construction there is no insurance object itself, but only building materials. The cost of the object being built is, of course, higher than the cost of materials, since it also includes the cost of work. In addition, this cost will constantly increase. A complex legal problem may arise here - if you indicate the final cost of a standing object as the insured amount, then when an insured event occurs before the completion of construction, the real value of the object at the time of the insured event will be lower than the insured amount, that is, there are grounds to talk about incomplete property insurance. To avoid such a situation, in my opinion, it is advisable to determine the insured amount as the cost of the object under construction at the time of the insured event, but not higher than the final cost of this insurance object.

The insurance amount in terms of insurance against the risk of liability for causing harm to other persons is established by agreement of the parties to the contract; no restrictions on its amount are established in the law.

The insured amount in terms of business risk insurance, as well as when insuring property, should not exceed its actual value (insurable value). For these risks, this value is considered to be the losses that the policyholder could be expected to suffer if the insured event occurred.

Since construction usually takes a long period of time, the parties to an insurance transaction are often interested in determining the insured amount in hard currency. As is known, paragraph 2 of Article 317 of the Civil Code of the Russian Federation allows for the possibility of expressing obligations in currency equivalent, but the contract must clearly indicate that we are talking about an amount equivalent to a certain amount in foreign currency.

Validity period of the construction and installation insurance contract

One of the common mistakes in this type of agreement is to indicate that the moment the agreement enters into force is the moment the construction work begins. However, this option cannot exist. In accordance with paragraph 1 of Article 425 of the Civil Code of the Russian Federation, contracts come into force from the moment of conclusion. For insurance contracts, paragraph 1 of Article 957 of the Civil Code of the Russian Federation introduced another option - insurance contracts, as a general rule, come into force from the moment the policyholder pays the insurance premium or its first installment.

Another typical mistake is the confusion of the concepts “validity of the insurance contract” and “insurance period”. The term of the contract is the period of time between the moment the contract comes into force and the moment of expiration of the period agreed upon by the parties. The insurance period is the period of time during which the insured event may occur. According to paragraph 2 of Article 957 of the Civil Code of the Russian Federation, the beginning of the insurance period may differ from the moment the contract enters into force, but under no circumstances can it go beyond the expiration date of the contract.

In accordance with paragraph 1 of Article 954 of the Civil Code of the Russian Federation, the construction and installation insurance contract, as in any other insurance contract, must determine the procedure and deadline for paying the insurance premium. If the terms of the transaction stipulate payment of the premium in installments, then, by virtue of paragraph 3 of Article 954 of the Civil Code of the Russian Federation, the contract may include a provision for early termination of the insurance contract at the initiative of the insurer in the event that the policyholder does not pay the next insurance premium on time.

S.V. Dedikov, member of the board of the Moscow Reinsurance Company

Insurance of construction and installation risks (CMR) - a type of property insurance that provides insurance protection for the property interests of customers, contractors and investors associated with the construction, installation, repair and reconstruction of any objects.

Insurance of construction and installation risks allows at all stages of the investment and construction process - from the development of a feasibility study to the commissioning of the construction project and the warranty period - to compensate for sudden and unforeseen losses that arise during construction, as well as to ensure the protection of investments in construction.
Insurance of construction and installation risks in Russia at the moment, unfortunately, is not a popular way to protect the interests of participants in construction contracts or the interests of third parties. But the construction boom of recent years and, accordingly, the increase in the number of potential insurance cases still force construction companies to increasingly turn to this type of insurance.
Insurance of construction and installation risks (CEM) is quite widespread in Russia, although it lags significantly behind the level of such insurance in Europe and North America. However, until now, the civil legal aspects of construction and installation insurance contracts have not yet been the subject of special scientific research.
Construction and installation risks insurance is a special type of comprehensive insurance, which usually covers insurance of a facility under construction, the safety of construction equipment and civil liability of construction organizations for damage caused to third parties.
In some cases, such an agreement also includes insurance of business risk in terms of non-receipt of the expected income. Sometimes insurance is provided for so-called associated risks, for example, construction materials in warehouses serving a specific construction site, vehicles and other special equipment (cranes, bulldozers, etc.), civil liability that may arise from their use.
From the point of view of civil law, a construction and installation work contract is a complex contract, consisting in fact of several simple insurance contracts for certain types of risks: a property insurance contract, a civil liability insurance contract and a business risk insurance contract. This, in turn, means the extreme complexity of the legal regulation of this type of insurance.

Subject of the contract for insurance of construction and installation risks

The subject of the contract is a relationship in which one party (the insurer) undertakes, for the payment stipulated by the contract (insurance premium), upon the occurrence of an event stipulated in the contract (insured event), to compensate the other party (the policyholder) or another person in whose favor the contract was concluded (the beneficiary) losses caused as a result of this event in the insured property or losses in connection with other property interests of the insured (pay insurance compensation) within the amount determined by the terms of the transaction (sum insured). The construction and installation insurance contract is one of those rare types of insurance contracts, the subject of which can cover all types of property insurance, but, in any case, at least two of these types at the same time.
Property insurance contracts, even those related to construction, as well as liability insurance contracts for a construction organization should be distinguished from construction and installation insurance contracts. A qualifying feature of construction and installation works agreements is always the comprehensive nature of the protection they provide.

Subjects of the construction and installation insurance contract

The subjects of such an insurance contract include the policyholder and the insurer.
The insured are investors, customers and contractors.
Considering that the investment and construction cycle consists of a wider range of participants than the specified insurers, in our opinion, it is more expedient to include all parts of this cycle in the insurance process:

investor - customer - designer - general contractor - subcontractor - supplier.

The insurer is an insurance company that has a license to implement a construction and installation risks insurance program.
The insured under construction and installation work contracts can be various legal entities and individuals. It should be taken into account that in terms of property insurance, the insured may, as a general rule, be persons who have an insurable interest, that is, an interest in preserving the relevant property based on a law, other legal act or contract. These can be construction organizations carrying out the construction of the object and its finishing.
They may include general contractors and subcontractors, but the latter have the right to insure in their favor only that property that belongs to them by right of ownership or on the basis of an agreement (lease agreement, leasing agreement, gratuitous use). When the construction and installation insurance contract specifies a beneficiary who has an insurable interest in the insured property, then any person has the right to be the insured in this part ( Art. 930 Civil Code of the Russian Federation).
Strictly speaking, there are no formal restrictions regarding the circle of insurers when insuring civil liability of a construction organization, since due to paragraph 1 of article 931 of the Civil Code of the Russian Federation under an insurance contract for the risk of liability for obligations arising from causing harm to the life, health or property of other persons, the risk of liability of the insured himself or of another person to whom such liability may be assigned can be insured.
At the same time, since construction and installation work insurance refers to the insurance of risks arising during business activities, it is quite obvious that the insured will only be a legal entity that has the right to attribute the costs of paying for insurance services to economically justified costs, that is construction organizations themselves and vehicle owners.
According to paragraph 1 of article 933 of the Civil Code of the Russian Federation under a business risk insurance contract, under the threat of nullity of this transaction, the business risk of only the policyholder himself can be insured and only in his favor. In other words, when business risk insurance is included in the construction and installation insurance contract, the insured under such a contract as a whole can only be a construction organization as a business entity.
In practice, complex questions often arise about possible insureds under construction and installation work insurance contracts. There is an opinion that customers can act as such without any restrictions. This point of view requires further research. The fact is that with a regular construction contract, the risk of accidental loss or accidental damage to the construction object that is the subject of the construction contract, before the acceptance of this object by the customer, is borne by the contractor ( clause 1 art. 741 Civil Code of the Russian Federation).
Moreover, in accordance with paragraph 1 of article 742 of the Civil Code of the Russian Federation a construction contract may provide for the obligation of the party bearing the risk of accidental death or accidental damage to the construction project, material, equipment and other property used during construction, or liability for causing harm to other persons during construction, to insure the corresponding risks. In other words, the legislator also indicates the contractor as a possible insurer. But if the terms of the construction contract provide for the phased acceptance of the construction project by the customer, then in this case he has a direct interest in the safety of the corresponding object.
In addition, judicial practice currently deduces independent insurable interest from persons who do not bear direct losses in connection with loss or damage to property (see, for example, the precedent given in paragraph 4 of the Review of the practice of resolving disputes related to the execution of insurance contracts ( Information letter of the Presidium of the Supreme Arbitration Court of the Russian Federation dated November 28, 2003 No. 75) Of course, the customer, even if he does not bear the risk of accidental death or damage to the construction project, has an interest in its safety, since for What is important to him is the timing of completion of construction work and, accordingly, the timing of receipt of income on funds invested in construction.
With regard to the safety of materials, equipment and machinery, the situation is less obvious, since all this, if necessary, can be replaced by the contractor quite quickly. The situation is different when it comes to unique equipment (for example, a tunnel shield) or materials (for example, columns or other elements made from solid pieces of granite or marble). Here, the customer has an insurable interest in their safety, since the loss, loss or damage of such equipment or materials can lead to a significant delay in construction time.
Only an insurance company or company that simultaneously has licenses for:

Insurance of property of legal entities, with the exception of vehicles and agricultural insurance ( subp. 12 clause 1 art. 32.9 of the Law of the Russian Federation of November 27, 1992 No. 4015-1“On the organization of insurance business in the Russian Federation” (hereinafter Article 32.9 of Law No. 4015-1));
- insurance of civil liability for damage to third parties ( subp. 20 Article 32.9 of Law No. 4015-1);
- insurance of business risks ( subp. 22 Article 32.9 of Law No. 4015-1);
- insurance of land transport (except for railway transport) ( subp. 6 Article 32.9 of Law No. 4015-1);
- insurance of civil liability of vehicle owners ( subp. 14 Article 32.9 of Law No. 4015-1) or for that part of the listed types of insurance that forms the configuration of a specific insurance contract.

In a construction and installation insurance contract, there are sometimes several insureds at the same time - these are construction organizations that simultaneously carry out construction, installation or finishing work on one site. In such a situation, it is necessary to clearly define in the contract how insurance payments will be distributed upon the occurrence of an insured event.
If the corresponding risks are insured under a co-insurance agreement, then several insurers act simultaneously on the insurer’s side ( Art. 953 Civil Code of the Russian Federation). It should be taken into account that if the contract does not define the rights and obligations of each of the insurers, then they are jointly and severally liable to the policyholder or beneficiary for the payment of insurance compensation.

Other subjects of insurance legal relations when insuring construction and installation work

In construction and installation work insurance contracts there may be beneficiaries in terms of property insurance if the insured is a person who does not have an insurable interest, but carries out insurance in favor of the contractor or customer. The appointment of this subject of the insurance legal relationship depends entirely on the will of the insured. At the same time, in terms of civil liability insurance, beneficiaries are appointed by law - they are always the persons who may be harmed ( clause 3 art. 931 Civil Code of the Russian Federation).
If the civil liability of another person is insured, then another subject appears as part of the insurance legal relationship - the insured person. Based on the norm paragraph 1 of article 955 of the Civil Code of the Russian Federation The policyholder has the right, unless otherwise provided by the contract, to replace the insured person with another at any time before the occurrence of an insured event, notifying the insurer in writing.
The exercise of this right under the construction and installation work insurance contract is possible only if the contractor is replaced. If the contractor remains the same, then the policyholder can only demand termination of the contract in this part, however, there is legal uncertainty here, since the current legislation does not know the institution of termination of part of the contract. At the same time, there is no direct prohibition on this in the law. Therefore, based on the general principle of the modern Russian legal system, by virtue of which everything that is not prohibited is permitted, it can be argued that termination of a contract in a certain part is still possible.

Essential terms of the construction and installation insurance contract

In addition to the subject of the construction and installation insurance contract, it must necessarily agree on the object of insurance, insurance risks, sum insured and validity period ( clause 1 art. 942 Civil Code of the Russian Federation). The object of insurance in the legislation, as is known, is understood as certain property or other property interest.
The construction and installation insurance contract must reflect all insurance objects - the property insured under this contract, the interest associated with the risk of civil liability, as well as the interest associated with the fear of not receiving the planned income. It should be especially noted that the description of the property can either include detailed lists of what is insured, or be reduced to an indication that any property of the corresponding type located on the construction site and other territory covered by the insurance policy is subject to protection.
Insurance contracts for construction and installation risks are concluded for the period of work:

For capital construction, repair and reconstruction of buildings and structures;
- installation of equipment.

By agreement of the parties, insurance coverage may extend to:

For equipment used in construction and installation work;
- temporary buildings and structures.

Sometimes in practice the question arises about the possibility of insuring several construction projects located at different addresses under one construction and installation insurance contract. The law does not contain any obstacles to this.
In construction and installation insurance, all known concepts for determining insurance risks are used:

All risks insurance;
- insurance against named perils;
- insurance against all risks with certain exceptions;
- insurance against named dangers, with the exception of those arising for reasons that are specifically specified in the contract.

The coverage area for the insured property and the coverage area for the risks of civil liability for causing harm to other persons may not coincide. As for the coverage area for the insured property, it can be either only a construction site, or a construction site and access routes for vehicles and special equipment, or the territory of a construction site, access roads to it, as well as a storage area for building materials and equipment located outside the construction site.
It should be borne in mind that if the insured property is damaged or stolen from a territory that is not specified in the policy, for example, some materials were unloaded from the outside of the construction site fence, then this incident cannot be qualified as an insured event.
The parties to the insurance transaction have the right to limit the coverage area for the risks of civil liability to specific boundaries, for example, along the perimeter of a construction site, or not to introduce such restrictions. In the latter case, it is simply important to indicate that cases of damage to third parties during work directly related to construction or its maintenance are covered. When the territory of liability risk insurance is limited, this means that the insured event under the insurance contract will only be causing harm to other persons precisely in this territory. If damage is caused in connection with construction work outside the territory specified in the contract, then compensation for it is the responsibility of the construction organization itself.
The insured amount under the construction and installation insurance contract as a whole consists of the insured amounts for each of its sections - property insurance, liability insurance and business risk insurance. However, it is impossible to add up the specified insurance amounts, since each of them has its own special nature. At the same time, the insurance amount in terms of insuring the object under construction as property has an extremely important feature - after all, at the beginning of construction there is no insurance object itself, but only building materials.
The cost of the object being built is, of course, higher than the cost of materials, since it also includes the cost of work. In addition, this cost will constantly increase. A complex legal problem may arise here - if you indicate the final cost of a standing object as the insured amount, then when an insured event occurs before the completion of construction, the real value of the object at the time of the insured event will be lower than the insured amount, that is, there are grounds to talk about incomplete property insurance. To avoid such a situation, in my opinion, it is advisable to determine the insured amount as the cost of the object under construction at the time of the insured event, but not higher than the final cost of this insurance object.
The amount of the insured amount is determined based on:

From the cost of construction and installation work - for the construction project;
- residual value - for construction equipment;
- actual costs - for temporary buildings and structures.

Insurance amounts for construction and installation risks reach large amounts. Insurance companies have the right to take on their own retention under one insurance contract a risk not exceeding 10% of the size of their assets, and the rest of the risk must be reinsured.
The insurer compensates for losses from loss of property, damage to property that occurred as a result of any sudden and unintentional events at the construction site (including theft).
In Russia, construction companies are reluctant to insure their risks. At the same time, accidents associated with construction processes and the transfer of an object from the contractor to the customer, as well as with its further use by the operating organization, have recently become more frequent. We often hear about cracks in houses and collapsing buildings and structures. The insurance amount in terms of insurance against the risk of liability for causing harm to other persons is established by agreement of the parties to the contract; no restrictions on its amount are established in the law.
The insured amount in terms of business risk insurance, as well as when insuring property, should not exceed its actual value (insurable value). For these risks, this value is considered to be the losses that the policyholder could be expected to suffer if the insured event occurred.
Since construction usually takes a long period of time, the parties to an insurance transaction are often interested in determining the insured amount in hard currency. As is known, paragraph 2 of article 317 of the Civil Code of the Russian Federation allows the possibility of expressing obligations in currency equivalent, but the contract must clearly indicate that we are talking about an amount equivalent to a certain amount in foreign currency.

Duration of the insurance contract for construction and installation risks

The validity period of the insurance contract is determined by agreement of the parties to the insurance transaction. It can be equal to the construction period or defined as a calendar period, for example a year.
One of the common mistakes in this type of agreement is to indicate that the moment the agreement enters into force is the moment the construction work begins. However, this option cannot exist. In accordance with paragraph 1 of article 425 of the Civil Code of the Russian Federation contracts come into force from the moment of conclusion. For insurance contracts paragraph 1 of article 957 of the Civil Code of the Russian Federation Another option has been introduced - insurance contracts, as a general rule, come into force from the moment the policyholder pays the insurance premium or its first installment.
Another typical mistake is the confusion of the concepts “validity of the insurance contract” and “insurance period”. The term of the contract is the period of time between the moment the contract comes into force and the moment of expiration of the period agreed upon by the parties. The insurance period is the period of time during which the insured event may occur. According to paragraph 2 of article 957 of the Civil Code of the Russian Federation the beginning of the insurance period may differ from the moment the contract comes into force, but under no circumstances can it go beyond the expiration date of the contract.
In accordance with paragraph 1 of article 954 of the Civil Code of the Russian Federation in the construction and installation insurance contract, as in any other insurance contract, the procedure and deadline for paying the insurance premium must be determined. If the terms of the transaction stipulate payment of the premium in installments, then by virtue of the norm paragraph 3 of article 954 of the Civil Code of the Russian Federation the contract may include a provision for early termination of the insurance contract at the initiative of the insurer in the event that the policyholder does not pay the next insurance premium in a timely manner.

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Currently, insurance has become a popular service among Russians. Almost everything can be insured. Moreover, in each area this service has its own characteristics. Insurance of construction and installation risks must be taken out during the construction of objects. This service protects against various risks that may arise during work, repairs, and reconstruction.

Why is the service needed?

The construction area is considered a high risk area. Unfortunately, accidents often occur during this activity. Moreover, they are observed when performing different types of work.

Accidents occur in all countries, only in some of them is insurance for construction and installation risks mandatory. In Russia it is voluntary. Reasonable owners of construction companies realize that it is better to include a percentage for insurance in the estimate than to pay a lot of money from their reserves when an insured event occurs. Thanks to this service, guarantees appear.

Features of insurance

When a deal is concluded between the two parties, a construction and installation risks insurance contract is issued. The document includes information about the participants in the construction business: the customer, the general contractor and the judicial contractor.

The contract outlines the rights and obligations of the parties. Typically, the insured is the general contractor, who is considered the financially responsible person upon delivery of the facility to the customer.

Objects of insurance

When constructing any facility, construction and installation risks insurance is required. The law indicates that the object is the property that is necessary for construction and installation works and located on the construction site. This applies to:

construction and installation products;
equipment;
buildings and structures;
belt objects;
installation of technical equipment.

Insurance period

This question is very important because it determines a lot. The company usually provides insurance coverage for almost the entire period of construction from the moment of unloading of equipment and materials until the delivery of the facility.

Concept of insurance risks

Insurance coverage provides protection against all risks. This service allows the policyholder to protect property from dangerous situations, as well as from:

incorrect calculations by designers;
inappropriate attitude of staff;
use of low-quality materials;
influence of electric current;
mechanical damage.

Insurance risks can be of any kind. These are situations that cause harm to people or objects. Insurance is the amount that arises by agreement between the company and the policyholder. It includes the amount of funds for facilities and installation.

Types of risks

Construction and installation risks insurance is of the following types:

“turnkey”: in this case, the general contractor takes responsibility for the delivery of materials, construction, and serviceability of equipment;
“delivery control”: responsibility for the work falls on the customer, and the general contractor organizes and controls the entire process.

Voluntary insurance of construction and installation risks involves receiving compensation for the following risks:

damage or loss of construction and installation works, equipment;
falling blocks;
soil subsidence;
weather change;
errors by workers when performing activities;
intentional actions of others.

Insurance of construction and installation risks is carried out against various phenomena. They must be indicated in the contract. The company is responsible for every violation.

Sums insured

In each case, the amount of risk is calculated individually. The characteristics of the project are taken into account. The amounts are affected by exposure to risks and features of the objects. Such factors include methods for carrying out construction and installation work, the availability of documentation, and a master plan.

Insurance amounts are calculated based on the estimate for the facility, work schedule, and contract agreement. The tariff is set based on the type of object, the set of risks, the experience of the developer, and the location of the construction site.

Agreement conditions

The contract must include all insured objects - property, interest. The description must be detailed. The document contains the features covered by the policy. The contract must include all risks that may relate to different objects.

The agreement is necessary to protect against various types of dangerous situations. Comprehensive insurance of construction and installation risks involves the inclusion in the contract of several situations due to which compensation occurs.

The coverage area is the construction site, access roads, and the area for placing materials. Coverage for liability risks may be limited or unlimited. In the latter case, it should be stated in the document that situations of harm caused to other persons during construction are taken into account. In the first option, the insured event is considered to be damage in the designated territory. The duration of the contract is determined by the decision of the participants and may be equal to the construction period.

A popular drawback is the designation in documents of the start of construction activities of the moment the paper enters into force. The agreement is valid from the moment of conclusion or transfer of the insurance premium. Payments can be made one-time or in installments. When the contribution is not transferred on time, the document may be invalid. Comprehensive insurance allows you to compensate for losses caused due to dangerous situations.

Insurance smr. Insurance of construction and installation risks: civil aspect Contract of insurance of construction risks

Subject of the construction and installation work agreement

Subjects of the construction and installation work agreement

Other subjects of insurance legal relations when insuring construction and installation work

Essential terms of the construction and installation agreement

Validity period of the construction and installation insurance contract

Subject of the contract for insurance of construction and installation risks

Subjects of the construction and installation insurance contract

Other subjects of insurance legal relations when insuring construction and installation work

Essential terms of the construction and installation insurance contract

Duration of the insurance contract for construction and installation risks

Why is the service needed?

Features of insurance

Objects of insurance

Insurance period

Concept of insurance risks

Types of risks

Sums insured

Agreement conditions

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