Construction work insurance, often called “site insurance” for the work, aims to cover material damage occurring during the execution of work, affecting the work in progress, the materials and sometimes certain equipment related to the site, according to the contract.

It differs from civil liability (project owner's liability or contractor's liability), which covers damages caused to third parties. Here, the objective is to protect the project itself: when an event destroys part of the work completed, it is necessary to finance the remedial work and limit delays.

For an SME acting as project owner, it is a tool for securing the budget of the construction site.

What construction insurance generally covers includes accidental and sudden damage affecting the work under construction, as well as damage to materials on site, within contractual limits.

Depending on the product, coverage may include events such as fire, storm, water damage, vandalism, and certain thefts, but the exact scope depends on the contract and security conditions.

Extensions may also exist for additional costs: clearing, emergency measures, temporary protection, or sometimes certain planning costs, but these items are often capped.

The points of vigilance are particularly important, because construction sites are risky environments, and insurers regulate coverage.

First, the frequent exclusions: poor workmanship, design flaws, planning errors, wear and tear, lack of maintenance, or progressive damage.

Accidental damage may be covered, but “poorly executed work” is not automatically covered; some contracts provide for extensions, but these must be negotiated and understood.

Next, the security conditions against theft: fencing, lighting, storage, surveillance, and sometimes requirements for making the item watertight and airtight.

Thirdly, the definition of the insured scope: start and end dates, locations, phases, and subcontractors. Any project that is extended or changes in nature must be declared.

Fourth point, deductibles and sub-limits: these can vary by event, and sub-limits may apply to certain categories of goods or expenses.

Fifth point, obligations in the event of a disaster: limit the damage, secure the site, document, keep evidence, and report quickly.

Choosing the right level of coverage requires a simple method. Start by defining the project: budget, duration, specific techniques, urban environment, neighborhood, and exposure to the elements.

Next, clarify who is responsible for what: project owner, companies, agents, and existing insurers.

Next, define the scope of the works insurance: structure, materials, temporary storage, and possibly on-site transport if planned.

A useful mini-list to check includes: covered events, exclusions for poor workmanship and design, safety conditions, deductibles, sub-limits on ancillary costs, coverage dates, and reporting procedure.

Construction work insurance is particularly useful when the construction site includes vulnerable phases: open structure, technical installations in progress, valuable materials on site, or tight schedule.

Mage & associés can assist you with a site risk analysis and a policy review, in order to align the coverage with the reality of the project.

The aim is to avoid two pitfalls: a policy that is too weak, leaving a major out-of-pocket expense, or a policy that is too broad and expensive, which does not correspond to your actual risk.