Professional indemnity insurance of participants in design and construction
and is taken out in compliance with the provisions of the Law on Territory Planning. The contracting of construction works requires the issue of a Professional Indemnity Insurance of Participants in Design and Construction.
The insurance product offered by Armeec Jsc is worked out in conformity with the international standards and the Bulgarian legislation and meets the requirements of the Law on Territory Planning and the Regulation on the conditions and order for compulsory insurance in design and construction (the Regulation). The entities and activities subject to insurance and the minimum limits of liability of the insurer are stipulated in the Regulation.
According to art.171 para 1 of the Law on Territory Planning all entities dealing with design, consulting, construction, construction supervision and technical control are obliged to take out this insurance.
The minimum limits of liability for each participant in the design and construction are specified in the Regulation and depend on the category of the construction project. The limit of liability of the insurer for any one occurrence within the policy period shall not exceed the limit of liability specified for one occurrence, which shall be equal to 50% of the total limit of liability. The limit of liability of the insurer for all valid claims made within the policy period shall not exceed the agreed total limit of liability. The compulsory level of insurance is taken out for one year period.
Voluntary levels of insurance at higher limits of liability can be issued as specified in art.173, para 1 of the Law on Territory Planning. Generally these refer to a certain project and the period of insurance may be longer than one year.