Comprehensive project insurance

Major projects and investments present great opportunities, but also harbour risks. Entrepreneurial risk itself is not insurable, but protection against the consequences of property damage has long been provided by the insurance industry.

It is frequently the case that major projects and investments are only possible if insurance cover is available. Munich Re has played a particularly important part in intro-industrial facilities and power stations, which have to be ducing contractors' all risks (CAR) and erection all risks commissioned and undergo a performance test before (EAR) insurances. take-over by the client.

Nowadays, major projects generally include complex construction and erection work. In order to cover both erection and construction risks and to provide comprehensive protection, Munich Re developed comprehensive project insurance (CPI).

It combines the classic construction and erection covers in one insurance contract and is therefore suitable for the insurance of both construction risks such as bridges, tunnels and dams, and erection risks such as complex industrial facilities and power stations, which have to be commissioned and undergo a performance test before take-over by the client.

The modular structure of comprehensive project insurance allows a tailor-made insurance solution for any construction or erection project. Depending on requirements and the desired scope of cover, the insured can compile an insurance contract tailored to the needs of the project using individual sections and the additional policy extensions available.

Loss prevention

The lower the losses incurred in the course of a project, the more successful the financial result is for all involved in the construction or erection. Loss prevention precautions are therefore extremely important.

For comprehensive project insurance, as for all engineering insurances, the significance of loss prevention is constantly increasing. Experience has shown that precautionary inspections and recommendations for safety measures reduce the number of claims and they are an effective way of improving claims experience.

Preventing claims is therefore the imperative order of the day. Underwriting aspects aside, the insured also benefits from assistance in loss prevention. Continuous reviews of the risks and inspection of regular progress reports are thus strongly recommended. Major construction sites are exposed to a wide variety of hazards. Loss prevention measures and a keen risk awareness are therefore important for a project's success.