New-Build Construction Project
Risk profile for a new-build construction site (residential, commercial or industrial shell and core): the risk attributes typically assessed in underwriting and the resulting commercial insurance programme architecture.
Risk picture
A new-build construction project bundles the works, materials and site facilities of a defined-duration undertaking into a single, time-limited exposure that ends on completion or handover. Typical loss drivers are fire, storm and water damage to partially completed structures and stored materials, collapse or damage during excavation, shoring or crane and lifting operations, damage to adjacent buildings from vibration, settlement or groundwater lowering, and third-party injury or property damage arising from site activity. Because value and hazard both increase as the works progress, the exposure profile at breaking ground looks very different from the exposure profile shortly before handover.
Risk attributes to capture
The table below is generated from this profile’s linked risk attributes and grouped by category; see the individual attribute pages for underwriting logic, evidence requirements and mitigation measures.
Coverage architecture
Construction (or Erection) All Risks cover insures the works, materials and site facilities against physical loss or damage from breaking ground to handover, rated primarily on the construction sum insured. Owner’s/employer’s liability (Bauherrenhaftpflicht) responds to third-party bodily injury or property damage arising from the project as such, while the contractors’ own general liability programme (Betriebshaftpflicht) sits alongside it for damage caused by their site activities. Event cancellation cover is relevant where the project includes a scheduled opening, ground-breaking or topping-out ceremony whose postponement or cancellation would cause financial loss.
Prevention
Loss prevention priorities are a documented ground and groundwater risk assessment before excavation begins, engineered shoring and monitoring where adjacent structures are within the zone of influence, a permit and inspection regime for crane and lifting operations, and a site-specific fire and housekeeping plan covering temporary works, hot work and material storage through to final handover.
- Kind
- Project
Risk attributes to capture
Construction/Project
- Construction Sum Insured — Construction sum insured is the total contract value of the works, materials, plant and site facilities to be completed under a Construction or Erection All Risks policy, forming the basis on which premium and probable maximum loss are calculated.
- Construction Period — Construction period is the planned duration from commencement of works on site to practical completion (and, where applicable, the subsequent maintenance period), as declared in Construction and Erection All Risks proposal forms.
- Main Contractor vs. Separate Trades — Contractor structure records whether a construction project is delivered under a single main contractor with subcontracted trades, or through separate trade contracts let directly by the principal, as declared in Construction and Erection All Risks and construction liability proposal forms.
- Ground Conditions Risk — Ground conditions risk classifies the geotechnical and hydrogeological characteristics of a construction site, such as soil bearing capacity, groundwater level and flood exposure, as declared in Construction and Erection All Risks proposal forms.
- Adjacent Buildings at Construction Site — Adjacent buildings at construction site describes the proximity, type and condition of neighbouring structures that could be damaged by excavation, vibration, dewatering or crane operations, as declared in Construction and Erection All Risks and construction liability proposal forms.
- Crane and Lifting Operations — Crane and lifting operations records whether tower cranes, mobile cranes or other heavy lifting equipment are used on the construction site, as declared in Construction and Erection All Risks and general liability proposal forms.
- Groundwater and Dewatering — Groundwater and dewatering records whether excavation works require active groundwater lowering and, if so, by what method, as declared in Construction and Erection All Risks proposal forms.
- Shell Construction Type — Shell construction type records the primary structural material and method used for the building's shell and core (e.g. reinforced concrete, steel frame, timber), as declared in Construction and Erection All Risks proposal forms.
Coverage architecture
Standards and codes
- SIA 118 – General Conditions for Construction Works