Did you know that the High Court recently overturned a District Court ruling in favour of a contractor insured under a Contractors All Risks policy? One of the most up-to-date sources of professional information, which quite often proves to be an excellent point of reference for insurance related issues, is case law.
To this aim, we have opened a dedicated area of this site for construction industry case law which is administered by Adv. John Geva, the veteran legal adviser of the Israeli Insurance Agents Association, assisted by Adv. Shlomi Hadar, both of who are considered to be authorities in the field of Israeli insurance law. This section will continue to be developed and will contain more and more important information and so we recommend visiting this section from time to time to keep updated…
Did you know that an extension for personal liability is not an automatic feature of Contractors All Risks or Professional Indemnity policies? In order to obtain this extension of cover, you need to specifically request an extension of cover for personal liability under the insurance policy. In practice, almost anyone who enters into a construction contract – from the management level (CEO, deputy CEO of construction, deputy CEO of engineering), commercial level (developer, directors, company shareholders etc.) and the executional level (the foreman, project manager, building contractor etc.) can be exposed to claims for personal liability…
Did you know that a certificate of insurance is not only a summary of cover but in fact a substitute to a policy which even overrides the insurance policy? Almost each one of our clients who is involved in construction projects, as property developers or contractors, is required to provide a certificate of insurance for tenders by the Ministry of Housing and other government ministries, projects involving public institutions and major projects in the private sector. Not only the principal but also the bank that puts up the finance for the project wants to ensure that the contractor in charge of the project has adequate insurance cover under a Contractors All Risks policy and any other insurance policy or policies that may be necessary for the project.
It turns out that many businesses in the construction sector – property developers, contractors, subcontractors and even key personnel in major construction companies – are completely unaware of the essential need to keep abreast of professional information (from an insurance perspective, of course) and thereby find themselves, in many cases, having to cope with insurance related problems affecting their business. The implication of this is high costs as well as various other major problems.
Did you know that in many cases contractors and property developers can be held liable personally for injuries to workers who are not their own employees?
Did you know that the solution to understanding (and maybe even avoiding) such situations is extremely simple?
Are you aware of the unique insurance related problems related to projects in the field of urban renewal such as National Outline Plan 38 projects?
At what frequency are you legally required to hold safety training sessions, what they should address and who should attend?
Are you aware of a High Court landmark ruling that effectively deletes the exclusion of “vibration, removal of support and weakening” in Contractors All Risks policies?
All of these examples (and many more) have an important common factor – all of them have a direct impact on the insurance cover and on compliance with the policy conditions. In many cases insurance policies are subject to express conditions that failure to comply with safety regulations or specific requirements – called warranties, or risk management measures that the insured is required to comply with, will void or significantly restrict the insurance cover.
The lack of professional information is another stumbling block.
When a contractor doesn’t know that they are in breach of a regulation or directive, or is acting in good faith but not in accordance with the law and regulations – they may even be unaware of the need and possibility to obtain professional advice before anything goes wrong to ensure that everything is in order.
In many cases we are called in to “rescue” contractors or developers from crises which could have been avoided from the outset, and unfortunately there are some cases when it will already be too late to turn the clock back.