Calculate construction all risks insurance

Who it is for

The policy is needed by anyone who invests in construction and is responsible for the result. It is often required by the bank financing the project or by the client under the construction contract. But even when it is not required, the policy helps protect the budget and schedule: a major uninsured loss on site can halt construction for a long time and lead to disputes among the parties over who should pay for restoration.

What the cover includes

In the Insurance Center calculator you can choose three blocks of protection. Construction and erection risks ("all risks") cover physical loss of or damage to the works, materials and structures on site from any sudden event except those expressly excluded. Third-party liability protects you if the works cause damage to someone else's property, life or health. Natural disasters, such as earthquake, flood, hurricane and mudflow, are especially important in regions with high seismic activity, including Almaty.

What to check

• Insurance period. Whether it matches the works schedule and includes commissioning and the warranty period.
• Deductible. What share of each loss you pay yourself, especially for natural disasters.
• Insured parties. Whether all contractors and subcontractors are included in the contract.
• Liability limit. Whether it is sufficient given neighbouring buildings and utilities.

When a claim may be declined

Typical exclusions are wear and tear and gradual deterioration, corrosion, damage from design errors and defective materials up to their own cost, downtime and loss of profit, intentional acts of the policyholder, breaches of building codes, and stopping work without notifying the insurer. Theft without signs of forced entry or when the site is unguarded may also be excluded. The exact list is set by the insurance rules.

What affects the cost

The calculation is based on the construction cost, i.e. the sum insured. Next come the type of project (industrial facilities and infrastructure are usually more complex than residential and commercial construction), the duration of the works (the longer the project, the longer the site is exposed to risk) and the set of selected risks. Insurers also assess the seismic activity of the area, the construction technology, the contractor's experience and safety measures on site.

What to prepare

• The construction contract and cost estimate
• The works schedule
• A brief description of the project and technology
• The site address and information about neighbouring buildings
• Details of the project participants

How to apply

What to do if an insured event occurs

1. Take steps to reduce the damage and keep people on site safe.
2. In case of fire, theft or harm to third parties, call the relevant services.
3. Notify the insurer or Insurance Center within the period specified in the contract.
4. Do not start restoration work before the insurer's representative has inspected the site, unless safety is at risk.
5. Collect documents: reports, photos and videos, certificates from the services, and an estimate of restoration costs.

How to choose a programme

For most projects the basis is "all risks" cover, with third-party liability added if the site is in a built-up area. Natural disasters are worth including in seismically active regions and where flooding is possible. Compare not only the premium but also the deductible: too high a deductible makes minor losses non-recoverable.

If the project is financed with a loan, ask the bank for its policy requirements in advance: the minimum set of risks, the beneficiary and the term. This way you avoid having to re-approve documents. For long projects lasting more than a year, it is useful to discuss with the insurer how the policy will be extended and how the sum insured will be adjusted if the budget changes.

This material is for reference only; final terms are set by the insurance rules and the contract.