Contractor’s all risks insurance
works while in process of construction or repair meets the requirements of art.173 para 2 of the Law on Territory Planning and provides protection to buildings and equipment from the inception of construction works till their delivery to the owner.
The insurance covers construction projects of any kind such as residential, office and industrial buildings, railways and roads, airports, bridges, canals, ports etc. The policy can cover also temporary buildings and equipment located on the construction site as well as all construction and erection works which are not included in the value of the construction contract.
The insurance of Armeec Jsc provides cover against loss of or damage to construction and erection works, construction machines, facilities and equipment, expenses for clearance of debris following any insured occurrence of the contractor, the principal and sub-contractors in the period of construction and the warranty period.
The sum insured of the construction and erection works is equal to the value of the contract works, i.e. the total reinstatement value of the construction works upon completion of the project, including the value of construction materials, labour costs, machine-hours, depreciation, transport and customs charges and duties, liabilities, including profit, as well as materials and equipment, provided by the principal.
The policy can be extended to cover experts’(such as architects’, engineers’ etc.) fees, necessarily incurred for rectification of the damages, resulting from the insured event. The limit of liability is fixed, as agreed by the parties.
The insurer indemnifies the insured for all sums which the latter is liable to pay according to the Bulgarian law for property damage and bodily injury occurring within the policy period on the construction site or its vicinity in the course of the insured construction and erection works.
The premium depends on the specifics of the construction project, the period of insurance, the hydrogeological, meteorological and seismic features of the area, the limits of liability to third parties, the extensions of cover etc.