Construction and Erection Risks
Who is it designed for
This insurance is designed for investors, undertakers, contractors and subcontractors of construction and erection activity.
Subject of the insurance
Construction and erection activity, performed during the construction of a building located on the territory of the Republic of Bulgaria, as well as the activities within its release period.
Insurance cover
The insurance cover contains three sections:
Section “A” – Material damages
The insurance cover shall include full loss or partial damage of all the assets at the construction site resulted from sudden and unforeseen manifestation of the following risks:
1. Failures in the construction process, caused by errors and lack of skills of the working team, negligence, not intentional omissions in the technology or the performance of the particular construction's works;
2. Fire, explosion, lightning, crush or fall down of piloted aircraft, its parts or cargo, as well as the damages from the application of water, foam or preparations as a result of fire extinguishing;
3. Storm (hurricane), torrential rain, flood;
4. Damages from the burden of natural snow and ice heaping and/or frost-damage, snow-slide, raising of the sea-level (sea waves);
5. Earthquake, landslide or collapse of land strata and rock fragments, sinking of land strata;
6. Burglary, only for materials and equipment, belonging to the site and located in locked premises;
7. The insurance cover may be also added by advisably made expenses (necessary expenses) for cleaning up the site after occurrence of covered insurance event, but not more than the agreed sum insured therefore;
8. The insurance cover shall include also damages on the building materials, equipment and building machines intended for the insured site during their temporary storing at the site as well as when they are assembled together or dismantled as a result of the a.m. risks (without burglary);
9. Extra charges for overtime - night work or work on public holidays, express frights etc. shall be compensated, only if agreed by an Appendix.
Section “B” – Third party liability
1. Under this section the Insurer shall compensate the Insurant up to the limits written in the policy as sums that the Insurant shall be obliged to pay on legal grounds in connection with caused:
1.1. Death, bodily injuries or disease, resulting from an accident;
1.2. Full loss or partial damage on movable or immovable properties, belonging to a third party, in so far as they have arisen in immediate relation with the construction, insured under Section “A”, and have occurred on the building site or in the immediate vicinity thereof within the term of the insurance.
2. In connection with the claims on the present section the Insurer shall compensate the Insurant also for:
2.1. The awarded interests and court costs in connection with the trial against the Insurant, except for the lawyer's fees;
2.2. All other expenses, made with the written consent of the Insurer.
Sum insured
1. Sum insured for the construction works - the full recovery value of the construction works as at the time of finishing the construction, including the values of all the construction materials, expenses for manpower, transport costs, rental costs, custom expenses, fees and other inherent expenses.
2. Sum insured for the construction materials and equipment - the recovery value of the machines and equipment (of the same type and quality), as well as the materials located at the construction site.
Insurance premium
The insurance premium shall be calculated according to the rates of HDI Zastrahovane AD depending on the insurance cover and the sum insured.
Validity of the insurance cover
The insurance cover shall be valid only for the address, written in the policy.
