Technical Insurance
Covering the complex risks of dynamic construction projects
Whether you are a contractor, installer, or project owner, construction work always carries the risk of damage. You could also be held liable for damage to neighbouring buildings or injury to a passer-by caused by your activities. That makes Construction All Risk (CAR) insurance essential.
During the construction period, CAR insurance covers material damage from unforeseen external events, design faults, and defective materials, for new builds, rebuilds, and renovations alike. The maintenance period can also be included, covering material damage that originated before that period began, including damage attributable to design faults.
Why CAR insurance?
A project in the (construction) phase knows even more technical risks than a completed structure. Besides damage from fire, storms and other external calamities, there is a greater risk of theft or vandalism, for example, because a construction site is relatively easily accessible. There is more risk of rain or storm damage as long as the structure is not yet wind- and watertight as well. In addition, damage is often caused by mistakes made by the executing parties themselves, such as a construction, design or engineering error, or by a defect in a material. Moreover, construction activities such as pile driving, excavation and well drilling can cause damage in the surrounding area. All these risks can be covered by CAR insurance.
Who is covered under CAR insurance?
CAR insurance can be taken out by the client (a company, government body, or project developer) or by the contractor. A key benefit is that all parties involved in the build are covered under the same policy, so if damage occurs there is no need to dispute who is responsible. You can arrange CAR insurance for a single project, or opt for a continuous policy. The continuous option is especially practical for contractors and clients who manage construction projects on a regular or ongoing basis.
What does CAR insurance cover?
CAR insurance offers broad coverage and is made up of several sections. Only Section I (the works) is mandatory; the remaining sections can be added as needed. This makes it a flexible solution for the full range of construction risks.
Section I: The works.
The works are insured against material damage, loss, and destruction throughout the construction and maintenance period.
Section II: Liability.
This section covers liability damages arising from construction activities on or near the construction site.
Section III: Client’s existing property.
This section covers damage to the client's existing buildings and property, provided there is a connection to the construction activities. Consequential overhead damage is also covered.
Section IV: Property of management and staff.
This section insures the personal property of people working on the construction site.
Section V: Tools, chains and sheds.
Tools, equipment, and temporary structures on the site are covered under this section. It is generally taken out by and for the contractor.
How long does CAR insurance run?
The policy covers the project for the full duration of the construction period. If the project runs longer than planned, the insurance can be extended for an additional premium. Once construction is complete, the maintenance period is also covered for damage that is discovered during that period but whose cause originated before it began. Work carried out to specification during the maintenance period remains insured as well.
Why technical insurance through Meijers?
Construction projects come with real risks at every stage. At Meijers, we understand how much time, money, and effort goes into delivering a project, and we help you protect that investment from day one.
Our team of experienced technical specialists works closely with you to identify your risks and understand what your business needs. We believe the best coverage comes from a genuine working relationship. By taking the time to learn your operations and requirements, we find technical insurance that fits the way you actually work.
More information?
Want to know more about CAR insurance or other technical insurance options? Reach out to our specialist Jurgen Bronchel.
Via j.bronchel@meijers.nl of +31 (0)20 504 27 22.
Jurgen Bronchel, Senior Accountspecialist
I'm a genuine specialist. After 35 years in technical insurance, this is what I do best, particularly covering construction projects in all their complexity. That coverage can be arranged on a one-off or ongoing basis. Technical insurance also extends to machinery and installations, solar panels, soil remediation, and more.
Clients and solutions are what drive me. No two construction projects are alike, so every client gets coverage built around their specific situation. Being truly available to the client is the job. On complex or high-value projects, I bring the insurer and client together directly. That shared understanding is where the right solutions come from.
