The Construction All Risks is an insurance policy which covers all losses or damage specific to the works, caused to third parties and to existing assets. It covers all losses or damage listed in the policy, except those which have expressly been excluded.

It is an insurance which covers material losses or damage of any kind suffered by the works during construction, whatever the cause and independently of any notion of liability. It also covers temporary works, equipment or materials intended to be incorporated into the works and all the equipment, associated huts and their contents, as well as all individuals working on the site.

It is a policy taken out by one party and covers all parties working on a construction site.

This insurance covers damage and losses resulting from events such as:

• fire, lightning, explosions during construction;
• collapse;
• natural events: flooding, earthquake, landslide, etc.;
• theft or attempted theft;
• defects, faults or errors in design, construction and assembly, or materials;
• strikes, riot, civil commotion, malicious acts;

It also covers existing property, in the event of damage to existing goods or buildings belonging to, or in the custody, of the project owner. This damage must occur during the execution of the works and be reported during the term of the insurance.

The term of the guarantee is a maximum of two years from the date of the start of the works. With BauHeem, an overrun of three months is accepted without any additional premium. If this period is also exceeded, it is possible to extend the term of the policy with an additional premium, to be agreed.

After the date of completion of the property, "CAR" also covers leaks for up to two years, thanks to the "extended maintenance" period.

Construction All Risks insurance is not compulsory but companies are not always insured for damage or losses on site and do not always have sufficient cash flow to cover any eventual damage. It may also be that the insurance they do take out is inadequate, or even non-existent.

The Construction All Risks policy provides a rapid financial response, without the need to enquire into liability. It enables a project to be resumed quickly and to respect deadlines or limit the impact of a claim.

Construction All Risks insurance policies are designed for all individuals or companies wishing to insure a construction site:

• a private individual who wishes to insure the construction of his house;
• a developer or a house-builder.

In general, Construction All Risks insurance is taken out by the project owner who manages the site.