Insurance of investments and developments
A natural concomitant of the development and growth of enterprises is the expansion, development and modernization of their operating environment and equipment. In many cases it involves the careful management of risks, the development of appropriate insurance schemes so that development does not come to a standstill due to a result of an unexpected (and even less desirable) event.
If you launch the development of the company’s real estate, the construction of a new property, it is advisable to conclude first the construction and installation insurance for the duration of the construction works (until the handover) before raising it to property insurance. In most cases, this has two main phases, the first one covering property damage under construction, and the second one covering liability damages in connection with construction. In any case it is recommended to adapt the contract to its execution including an examination of whether the construction may damage existing property surrounding it or whether the property under the risk is your own or owned by others. It is also recommended to consider the damage during the warranty period, the load during the trial operation, the possibility to deviate from the schedule – and we could list the aspects to be considered.
If the company is preparing to “install” an existing property, such as a shelf or scaffolding system in a building, or for installation works, we recommend installation insurance with a content similar to one described above.
We also need to mention the case where the investment is made by a general contractor who already has such insurance. In this case, it is worth checking the existing (in many cases framework) contract and examining whether its content corresponds to the planned construction works at the company, as well as what compensation limits are included in the contract and whether damages have already been reported during the period under review (of course we are also happy to be at the disposal of our partners in this activity). If the existing policy does not seem appropriate, it is worth requiring the contractor to conclude a separate contract.
If the expansion consists of newly acquired equipment, machinery, electronic equipment, or a group of them, it is worth making a machine breakage insurance or insurance for electronic equipment (although in many cases this is not a matter of choice, as this is often a requirement for funded equipment).
These types are able to deal with both external and internal fractures, burglary and robbery damage, as well as theft and partial theft damage, provided the contents of the contract have been drawn up according to the use of the machine, in the case of non-fixed machines with regards to the territorial factor. It is very important to be aware that, due to the operation or use of the insured asset, it is not one of the exclusions of the insurance company, so that this does not become apparent later in the event of a loss event.