Construction project insurance
Construction project insurance:
Custom-tailored way to insure construction projects
In the combined construction project insurance, all liability insurance and construction work cover required for the construction project are batched into one product. In addition, it includes all parties involved in the construction in one insurance solution.
Construction projects in the logistics sector are mostly major projects with many individual craft segments in which, besides the main contractor, many different companies are involved. When carrying it out it is necessary to meet deadlines and avoid costly construction delays. In practice, in a claim case protracted coordination processes cause unnecessary costs.
The corresponding insurance protection for such projects was in the past mostly solved in the conventional way: Each of the parties involved in the construction insures itself individually. This insurance model can nowadays no longer satisfy the particular interests of all the participants, which is why in recent years combined construction project insurance has become increasingly established on the German insurance market.
Combined construction project insurance meets the increased requirements of investors and the changed framework conditions as well as the interfaces with major projects and minimises the financial risks incurred with conventional insurance solutions. This applies in particular to construction projects in the logistics industry where tight coordination of architectural firms, intra-logistics planning and technical building furnishing is essential and indispensable.
Combined construction project insurance permits the investor or the main contractor to have seamless, bank-conforming insurance cover with the certainty that it will be maintained throughout the entire life of the project. The contractor or general contractor keeps control of the „reins,“ in particular in regard to deductibles, special agreements on project-specific properties or agreed cost items which he otherwise would have to check for all policies of the construction participants. The combined solution creates, besides transparency of the existing insurance cover, absolute transparency in case of insurance costs to be incurred and ensures that separate insurance coverage of participants in the construction has not already been used up in other projects.
Advantages of combined construction project insurance
- Project related insurance design as mandated by the contractor
- Uniform insurance cover which includes all those involved in construction
- Insurance certification from a single source for all those involved in the construction
- Avoidance of gaps in cover
- Costly verification of insurance cover of the participants is dispensed with and reduces the contractor’s administrative costs
- No additional delay in the progress of construction due to conflicts about the cause and jurisdiction of different individual insurers of those involved in the project
- Transparent assessment procedure for all those involved in the construction
- Barring of internal recourse procedures
- Clarification of fault is no longer of primary importance
- All companies involved in the project are included in the insurance
- Quicker and simpler compensation minimises claim-related construction delays
- Optimises the purchase of insurance cover by means of a project related risk assessment
- Certainty for contractors and investors