Ruben Nieto, Director of DA-Solutio
Of the numerous records of Construction All Risk insurance that I have analyzed, catches my attention the very few times that insurance brokers or final customers have been interested in negotiating special clauses of a contract.
Rarer they are the occasions in which insurance professionals request insurance companies a pro forma of the policy as a previous point to the formalization of the contract of insurance. And it is that is to make a suitable objective of tenders transferred to the customer, the best document that they can handle is to know how it would be the complete policy with the particular conditions, general conditions and special conditions with its clauses.
I am not saying anything new when I affirm that the first thing that is usually regarded is the insurance premium, then the sums insured, later coverages (the more it seems that they offer, the better they look) to end, in most cases, by the deductibles and the limits of compensation, distances or temporary periods. If the know-how of the person presenting offers to customers has taken minutes to indicate the special clauses, these only arrange an appointment (for example, extensive maintenance, overtime, excavation, consequences of error, fire protection, chronogram…), but the complete text is not included of what is established in them.
Some people are more accustomed to working with Multi-Risk insurance as contracts that are a compendium of nominated risks (risk of fire, risk of flood, risk of paralyzation of activity, etc.) covered in the policy. To help to understand the concept o “All Risk” to these professionals of the sector, I say, grosso modo, that in this type of insurance it has coverage, with the limits that are established, everything what is not expressly excluded in the contract. I want to stress the importance that for the customer has the possibility of being able to contract an insurance that it covers before any fortuitous and unexpected event affecting his work and whose reason do not be among the policy exclusions.
In the general conditions are indicated already enough exclusions that are in the habit of being common to the majority of the insurance companies and that are difficultly negotiable since in occasions they are a consequence of the signed in their respective Reinsurance contracts. Nevertheless, the special clauses are the suitable instrument to best adapt the policy to the pretensions of transfer the risk by the builder. For this motive I claim the importance of knowing exactly their content and, if necessary, to begin to negotiate them if we see that their exclusions or limitations do that the contract of insurance is insufficient for the needs of the customer.
To negotiate a special clause can be directly not to put it into the policy to prevent establishing additional limitations. A second way of negotiating would be to agree the wording so that there are modified the limitations or exclusions that it had initially. To create a new special clause repealing as necessary the terms arranged in the general conditions or rest of special clauses is the third way, much more technical and specialized, of negotiating with the insurer the final contract of the policy.
We also find increasingly The All Risk insurance for phases different from that of construction. Nowadays it is not difficult to obtain insurance offers destined for the industries and for the companies with great number of real-estate assets, among which we can include the public administrations, bank sector, franchises, large distribution channels and similar. The negotiation of the special clauses in these cases becomes equally essential to obtain the best conditions of insurance.
I insist on the importance that I give to negotiate in all its terms the insurance policy before the customer has signed it and this includes in a fundamental way the analysis of the special clauses.
Sometimes the insurances of Construction, as those of Civil Responsibility, they are subjected to what applies to an Administrative Terms and Conditions, being habitual in works for the Public Administrations. It is an issue that it exceeds what now I am treating and that I will develop in another moment.
Special Clauses in Construction All Risk (CAR) Insurance por Ruben Nieto Seijas se distribuye bajo una Licencia Creative Commons Atribución-NoComercial-CompartirIgual 4.0 Internacional.