Construction all risks (CAR) insurance for a single project
A single-project CAR policy runs between two dates you give in advance and covers precisely that one works; whatever happens after the end date or falls outside the contract sum declared is no longer covered.
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A premium indication, not personal advice. Prefer to talk it through? Call 072 - 509 24 56.
In brief
The single-project form is a project policy: you declare one works, with a contract sum, a start date and an expected completion date, and pay a single premium for it. That is the mirror image of the continuous construction all risks (CAR) insurance, under which every new works is automatically included under a framework contract as long as it stays below the agreed upper limit.
That structure makes the policy predictable, but also rigid. Everything you declare at the outset is the basis on which the insurer accepted the risk. That is the duty of disclosure in Article 7:928 of the Dutch Civil Code. If the works then changes materially — a higher contract sum, a different construction method, a longer duration &mdash. You have to report it and not assume it is included.
You choose this form for a one-off or unusually large works, for a project that differs from what you normally do, and where the client requires a policy schedule in the name of this works. If you work all year on comparable jobs, the continuous arrangement for contractors is simpler administratively.
What does CAR insurance for a single project cover?
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.
The end date is a hard limit, not a target
Construction projects overrun, and a policy that has expired cannot be repaired after the event. Damage arising after the end date has passed is uninsured, even if the cause lay in the construction period and scaffolding is still standing. Put the end date of the policy in the same programme as the completion date and apply for an extension as soon as the programme slips, not the week afterwards.
The contract sum is both the basis and the ceiling
The contract sum declared determines the premium and the sum insured. If the works grows through additional work without you adjusting the policy, you are underinsured for that part and a claim is settled proportionately. Report additional work as soon as it is instructed, not only at the final account. Also include demolition costs, temporary works and the value of materials supplied by the client if the conditions require it.
Decide in advance who the policyholder is
On larger works the client sometimes takes out the project policy rather than the contractor. That is fine, provided you know what is arranged for you: are you named as a co-insured on the schedule, who bears the excess, and is your own ancillary plant and site hut included? The latter is often not the case. Ask for the policy schedule before you sign, not after a loss.
What a project policy never pays for
Outside the cover are redoing your own defective work, penalties and reductions for late completion, and the profit the client loses because the works is at a standstill. Intent and wilful recklessness are excluded under Article 7:952 of the Dutch Civil Code. Damage outside the site described on the policy also does not count, not even where it concerns material for the same works.
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?
Contract sum for this one project. The project value declared is the basis of calculation and at the same time the upper limit of section 1.
Duration in months. The premium is calculated over the full term. An extension means an additional premium.
Maintenance period included. The period after completion for which you still want cover extends the risk period and counts separately.
Nature of the structure. A commercial building, a civil engineering structure and a house each have different damage patterns and construction methods.
Location and adjoining properties. Building in an inner-city setting between existing premises weighs more heavily than an open site.
Named co-insured parties. How many parties fall under this single policy determines the extent of the insured interest.
Insurers weigh these details differently. That is where your saving is.
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.
When do I choose a single-project policy and when a continuous one?
A single-project policy suits a one-off works, a project that is larger or different from your usual assignments, and cases where the client requires a policy in the name of this project. If you carry out comparable work of the same order of size all year, a continuous policy saves you an application per project and prevents gaps in cover between two jobs.
The project is overrunning. Can I arrange that afterwards?
No. An extension has to be applied for and accepted before the end date. Once the policy has expired there is no cover for the days that follow and it cannot be added retrospectively. So report a threatened overrun as soon as the programme shifts. The extension is administratively simple as long as the works is still insured.
Does additional work automatically count towards the sum insured?
No. The sum insured is the amount you declared at the outset. If the contract sum rises through additional work and you do not report it, the works is uninsured for the difference and a claim is settled proportionately. So pass on additional work as soon as it is instructed; increasing the sum during the term usually costs only an additional premium on the difference.
Who should take out the policy: me or the client?
Either can, but it has to be done properly once. If the client takes it out, check that you and your subcontractors are named as co-insured on the schedule, who bears the excess and whether your own plant is included. If you take it out yourself, record in the contract that the client will not take out a second policy for the same works.
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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