Installations · test running · transport to the location
Erection insurance
On erection work the heaviest loss rarely arises during assembly, but during testing: the first run, the pressure test and the first time voltage is applied.
The calculator and the quote form below are in Dutch. Prefer to do this in English? Email info@finassverzekert.nl or call 072 - 509 24 56 and we will take it from there.
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A premium indication, not personal advice. Prefer to talk it through? Call 072 - 509 24 56.
In brief
Erection insurance covers the assembly, connection and testing of installations, machinery, pipework and technical structures. The sum insured does not consist of a contract sum for brick and concrete, but of the value of the objects to be erected plus the erection costs.
The difference from a construction CAR policy lies in the test phase. As soon as an installation is put under pressure, temperature or voltage, one failing component can damage the rest of the works. That damage comes from within and not from outside, and that is exactly what is often only covered to a limited extent on an ordinary construction policy.
The route to the location also counts: transport, lifting and storage of components with long lead times are rarely a marginal issue here.
The structure of the cover in three parts, with an overview per situation below.
Section 1
The works
Damage to the works themselves during construction or installation.
Fire, storm and water
Theft of materials
Inherent defect and design fault
Vandalism on the building site
Section 2
Liability
Damage to property and persons of third parties on and around the works.
Adjoining premises
Injury to bystanders
Cables and pipes
Optional
Extensions
What comes into play alongside the works themselves.
Client's existing property
Ancillary plant and site huts
Maintenance period
What is covered
Situation
Works section
Liability section
Storm or water damage to the works in progress
Yes
No
Theft of materials from the building site
Sometimes
No
Damage to an adjoining building
No
Yes
Injury to a bystander
No
Yes
The client's existing property
Sometimes
Sometimes
Repair of your own defective work
No
No
This overview is general in nature and is not personal advice. What is actually covered, including exclusions, limits and the excess, is set out in the policy conditions and the insurance card (verzekeringskaart) of the insurer; you receive both before you take out cover. Taking out cover without advice? Then read what execution only means for you.
Where things go wrong in practice
Four points that make the difference between a policy that pays out and one that does not.
Testing and commissioning are a separate period
When you receive the quotation, ask which test period is meant, whether repeat tests after a modification remain covered, and whether a different limit or a higher excess applies during testing. For used or reconditioned components, test cover is sometimes excluded. If the installation stands idle because a test goes wrong, the physical damage is a matter for this policy; your client's lost production is not.
Damage to the installation as against damage by the installation
While you are erecting, it is damage to your own work. If you damage the operating business around it, that is existing property or liability towards third parties. Once the installation has been handed over and then causes damage, that shifts to product liability under Article 6:185 of the Dutch Civil Code and your public and employers' liability insurance. The erection policy stops at handover; that boundary is hard.
Transport, lifting and storage are part of the risk
A pump, transformer or air handling unit with a lead time of months is damaged on the way or during lifting. Erection cover does not automatically include that: transport you arrange with goods in transit insurance, your crane or telehandler with plant and machinery insurance. Have the load on the hook and the storage at the location expressly declared. Delay losses and contractual penalties caused by the new lead time remain outside the cover in any event.
What an erection policy does not pay for
If the installation runs but does not reach the agreed efficiency or capacity, there is no physical damage and therefore no cover; that is a warranty matter with your supplier. Also excluded are wear and corrosion, penalties and consequential loss from delay, and re-erecting your own defective work. If you weld or cut, comply with the hot work clause.
Existing property is the most commonly missed section
If you work in or on an existing building, that building is not your works but the property of the client. Damage to it does not fall under section 1 and, on your AVB, falls under the care, custody and control exclusion. The section existing property fills that gap, and with conversions, renovations and installation work that is not an edge case but the core of the risk.
The maintenance period continues after handover
After handover there is often a maintenance period during which you remain liable for defects that arose during construction. Agree that period explicitly and have it stated on the policy. Under the Wet kwaliteitsborging (the Dutch Building Quality Assurance Act) this carries more weight: Article 7:758(4) of the Dutch Civil Code places the burden of proof for hidden defects on the contractor.
What does your premium depend on?
Value of the objects to be erected — The component value plus erection costs forms the basis, not a building contract sum.
Type of installation — Pressure, high temperature, voltage and moving parts determine what can go wrong during testing.
Extent and duration of the test phase — The longer and more intensive the testing, the greater the share of the heaviest phase.
New, used or prototype — A first-of-type or a reconditioned machine is assessed differently from series-built equipment.
Transport and storage insured — Delivery of components and storage at the location are separate extensions with a weight of their own.
Erection in an operating business — Working among production that continues increases the risk of damage to existing installations.
Insurers weigh these details differently. That is why comparing pays off.
How we arrange it
You request a quoteWe take stock of your situation, your risk and your wishes.
We compareseveral insurers, on premium as well as conditions.
You receive a proposalWith an explanation of the differences and the exclusions.
We arrange the switchIncluding cancellation, so there is no gap in cover.
Customers rate our service on four aspects: personal service, service delivery, availability and the outcome. The reviews are collected and published by NH1816 and come from customers who have actually taken out a policy with Finass Advies B.V. or reported a claim.
What is the difference from ordinary CAR insurance?
A construction CAR policy is built around building work and the risks of an open site. Erection insurance is built around installations and machinery, and expressly covers the phase of assembly, connection and testing. The sum insured is the value of the objects plus erection costs instead of a contract sum for building work.
Is test running insured as standard?
Not always, and certainly not always without limit. Ask about the length of the test period, whether repeat tests after a modification are included and whether a different excess applies during testing. For used or reconditioned parts, insurers sometimes exclude test cover. Have this recorded on the policy schedule or in a clause.
Is transport of the components covered?
Only if it has been insured. Erection cover in principle starts at the location. Transport to the site you insure with goods in transit cover, and storage on or beside the works has to be declared as an extension. For parts with long lead times that weighs heavily, because replacement affects the whole programme.
What if the installation runs but does not reach the agreed capacity?
Then there is no cover. Erection insurance pays for physical damage, not for disappointing performance. If the efficiency falls short without anything being broken, that is a matter of warranty and contract with your supplier or client. The penalty or the delay loss flowing from it also falls outside this policy.
Finass Verzekert is a trading name of Finass Advies B.V. We advise on and arrange non-life insurance on the basis of an objective analysis of several insurers, and receive commission for this from the insurer, which is included in the premium. You pay no separate advice fee. Before you take out cover, we establish your wishes and needs.
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