Installation and construction all-risk insurance for contractorsA single insurance solution with comprehensive coverage for builders and contractors
The right insurance cover for your company’s construction and installation contracting
When taking into account the work hours, machines and raw materials of construction or installation work, the value of a contract may rise considerably. For this reason, they should be insured with care.
Fixed-term or continuous insurance
You can take out insurance for a fixed-term contract or a continuous annual insurance.
Tailored to your company’s needs
You can add separate coverage against loss or damage to, for example, work site equipment, working machines or property outside the work site.
CAR/EAR insurance protects you against property risks at the work site
CAR/EAR insurance is a single solution to ensure comprehensive coverage for your company's installation and construction projects as well as the machinery, structures, raw materials and supplies needed in such projects. It is suitable for companies practising construction contracting or machinery or equipment installation.
The insurance covers sudden and unforeseeable losses, including
- damage due to fire to a new building under construction,
- breakage of water fixtures and resulting water damage to buildings under construction,
- damage to a precast concrete unit during lifting,
- breakage of a piece of equipment being installed due to falling over or falling down.
Solutions for all types of contractor and installation insurance needs
Your company can take out CAR/EAR insurance either for a fixed term for a specific contract or as a continuous annual policy.
Fixed-term site-specific insurance is a simple solution when your company is obliged as the main contractor to insure all parties participating in the contract, or if you are a subcontractor or secondary contractor and need to insure your own contract. Please note that the sum insured must correspond to the targets final cost estimate or your own contract.
An annual policy based on net sales or invoicing is a good option when your company has many short contracts or engages in repair or maintenance. The insurance covers agreed property items up to the specified maximum compensation. The premium basis is either your company's net sales or invoicing.
Cover against delays and other caused losses
Your company can also take out insurance expediting costs in situations caused by losses where restoring the object of insurance to its original state may require additional expenses. Due to the rushed schedule in such situations, you may be required to work overtime or hire temporary help.
Keep in mind that all contractors operating at a work site must also have valid business liability insurance. We also recommend that contractors take out insurance for property surrounding the site.
In construction and installation work, insurance policies designed specifically for these lines of business are also required. Pohjola Insurance experts have extensive knowledge of your business and understand the risks involved. We will gladly go over your insurance needs with you and help you choose a suitable insurance solution. Enter your contact details in the request for quote below and we will be in touch with you soon.
Price of CAR/EAR insurance – how is the rate determined?
In fixed-term policies for a specific target, the insurance premium is based on the construction work quality, building's fire class, contract price, deductible selected, and contract period. With regard to installation work, the basis is the contract price, contract period, deductible chosen, and which machines are being installed.
In continuous annual policies, the premium amount is affected by the quality of construction work or machinery to be installed, and the annual net sales or invoicing of the insured operations.
Validity of insurance
The insurance is valid until the end of the insurance period. However, as to work sites, insurance coverage ends at the latest when the target has been handed over to the customer or it is being used, or when the insurance that is renewed automatically each year is terminated.
For the insured work item, the insurance will also be valid for the warranty period under these terms and conditions, but for a maximum of three years from the delivery or bringing into use or partial delivery or bringing into use of the item. This concerns losses caused when performing guarantee repairs or which have been caused by flaws during installation or construction.
The maximum compensation in such losses is typically 10% of the sum insured for the work site, and only to the extent that damages cannot be claimed under any other insurance.
The scope of coverage and restrictions are described in more detail in the insurance terms and conditions. This product card gives an overview of Erection all risks insurance/Contractors' all risks insurance policies provided by OP.
- Erection all risks insurance contractors' all risks insurance, Terms and conditions, YH 01 (pdf)
- Päivittäinen paloturvallisuus, S411 (in Finnish) (pdf)
- Rakennus- ja korjaustyöt, S450 (in Finnish) (pdf)
- Hot Work, S621 (pdf)