REALWorld Law



What insurances need to be put in place by law or under a typical construction contract?



There are no insurances required by law. Nevertheless, pursuant to the construction contract, contractors may be obliged to take out, at their own expense, certain insurances relating to the works to be carried out. Such insurances typically include:

  • Construction all risk (CAR) insurance to insure the construction works that are being undertaken
  • Liability insurance to cover losses, damages, injuries etc caused to:
    • the employees of the contractor; and/or
    • third parties (eg owners of the adjacent buildings)1
  • Professional indemnity insurance to cover losses and damages arising from errors or omissions committed by the contractor during the conduct of its business activities2


1Construction Act 39. § (5)
2Gov. Decree 191/2009 42.§ (9);