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CONSTRUCTION INSURANCE PRODUCTS

LEXGARANT Insurance Company offers the following types of insurance to construction companies:

  • Construction insurance, including coverage of liability to third parties arising in the course of construction and assembly works;
  • Machinery breakdown insurance;
  • Electronic equipment insurance;
  • Movable equipment insurance;
  • Post-commissioning warranty liability insurance.

Contracts for turn-key construction projects provide not only for the construction and assembly operations, but also for the delivery and installation of equipment. The obligations relating to both types of the contract operations are borne by the contractor throughout the entire contract term, including the post-commissioning warranty period of the equipment operation.

Design errors, equipment manufacturing and assembly/installation defects may not only cause a breakdown or an accident, but may even result in the complete loss of the equipment or some other property of the enterprise located in close proximity to the facility or object suffering an accident, or even cause harm to life and health of physical persons.

Loss of, or damage to, equipment in the course of assembly and installation may result in missing of projects commissioning deadlines and a requirement to manufacture production equipment to replace the lost or damaged equipment, which may considerably undermine the financial stability of the company.

In designing proper insurance coverage for construction companies it is extremely important to provide a comprehensive protection, as their operations are subject to a variety of specific perils apart from the usual risks, such as fires or natural disasters. Construction insurance programs offered by LEXGARANT Insurance Company enable construction companies to operate effectively irrespective of external events.

The cost of insurance is included in the overall project cost and is passed on the customer as their expense.

What can be insured and what are the insurable risks?

1. Insurance of facilities under construction

This is one of the most substantial components of the overall insurance coverage of any construction business. The coverage applies to all the stages of the construction process, from the foundation pit and groundwork to the commissioning of the facility.

2. Insurance of property located on the construction site

An accident on a construction site can damage property located on the site. Thus, an insurance program can only be considered truly comprehensive if it provides coverage for such events. The insurance company provides coverage for buildings and structures surrounding the facility under construction, or parts of buildings remaining intact in the course of a reconstruction project, as well as other property owned by the insured or the customer.

3. Insurance of construction machinery and equipment

Insurance coverage is provided for construction machinery and equipment, as well as transport vehicles used within the construction site and not allowed to operate on public roads network. Damage caused to them due to any accident or casualty may cause substantial losses and project downtimes.

4. Insurance of temporary structures

This type of insurance involves risk coverage of temporary structures used on the construction site, such as offices, workers' shelters or hangars.

5. Insurance of facilities for the term of warranty obligations

Completion of a construction project and commissioning of the completed facility are followed by a twelve-months' warranty period of the facility operation. During that period the construction organization is liable for any defects identified in the course of the facility operation. LEXGARANT's policy covers any financial losses caused by destruction of, or damage to, the insured facility during the warranty period as a result of any defects or faults in construction, assembly, adjustment and commissioning works identified during the warranty period.

6. Insurance of contractor's third-party liability

The insurance coverage applies to the liability for harm to third parties' life, health or property as a result of any events occurring during construction, assembly, adjustment and commissioning works, as well as the warranty period.

Modified: 19:13:37 23.01.2017