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Key points at a glance
- Worry-free construction: Accidents can happen quickly on construction sites. Contract works insurance covers property damage that can occur at your construction site as well as the theft of property already built into the construction.
- Comprehensive coverage – for every situation: Even though you are not at fault, you can still incur high costs for damages. For example, if the party at fault cannot be determined.
- Well insured, from start to finish: Contract works insurance for companies covers all construction and installation services, from the groundbreaking ceremony to when the keys are handed over.
What is contract works insurance?
Whether you are renovating your company building or constructing a new office building, contract works insurance forms a solid basis for your construction coverage. It covers the building under construction, the building site and all building materials during the planning stage and all stages of construction. It also pays for damages and the consequential costs of unforeseen construction accidents or mishaps that arise due to theft or vandalism.
In the event of a claim or a dispute, the insurance can pay out an advance so that the construction owner capital remains untouched, allowing work to proceed quickly and thus avoiding expensive construction delays.
What does AXA contract works insurance cover?
- Damage due to construction accidents
- Advance payment in the event of damage to prevent construction delay
- Acts of vandalism
- Theft of property that has already been installed
- Burglary of loose materials
- Damage due to fire and natural hazards (depending on the cantonal regulations)
- Cleanup and disposal costs of insured damage
- Costs of locating the damage
- Demolition and reconstruction costs
Who is insured?
Contract works insurance protects the interests of the construction owner. All persons involved in planning the building (such as architects and engineers) and the companies performing the construction are covered.
What additional benefits are available?
Complex construction projects involving large construction sums and many different companies need comprehensive coverage during the entire construction period. This makes it possible to avoid gaps in coverage that would affect the architects, engineers, professional planners and companies involved and could arise if coverage is provided by different carriers. The following insurance add-ons let you enhance your contract works liability coverage:
- scaffolding, excavation supports, sheet piling and formwork, temporary structures, barracks, billboards and barriers
- Construction substrate and soil mass
- Existing structures, property at risk and chattels
- Construction equipment and tools
- Drilling for geothermal heat probes
- Cost of experts
- Damage from spray painting and graffiti
- Scratches on surfaces
- Claims from delayed or interrupted construction work
- Additional costs incurred from damage
- Earthquakes
Construction defect coverage for planners
Architects and civil engineers can take out construction defect insurance to avoid any gaps in coverage between their professional liability insurance and contract works liability insurance. This policy provides financial protection if they make a mistake which causes a defect in the building or causes an accident.
Download all the information
Support and frequently asked questions
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Who takes out contract works insurance for a construction project?
There are no hard and fast rules about who should purchase contract works insurance for a construction project. In practice, it is generally the construction owner or the architects who conclude the policy. It is a good idea to clarify who will take out the insurance before construction begins. Generally contract works insurance is taken out together with construction owner’s liability insurance.
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We are having construction work done by companies that are properly insured. Do we need contract works insurance?
In general, yes. Most companies take out just a commercial third-party liability policy. However, this doesn’t cover all construction accidents, or it first requires clarification and only pays compensation in cases where fault can be proven and only after a certain period. Here, contract works insurance covers construction accidents regardless of their cause. It also grants advance payment in liability cases – regardless of how long they take to clarify. Your company can therefore complete the construction project on time.
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Shortly after inauguration of the new building, water pipe damage occurred. Is this covered by contract works insurance?
Normally it is not, as the construction work has already been completed. However, for building construction up to a maximum construction sum of CHF 5 million, AXA includes building property insurance in the main policy. This temporary policy covers any such damage that arises following the planned date of building completion. In order to remain fully protected after the transitional period, we recommend purchasing a separate building property policy to extend your coverage.
