Constructional Works Cover

Product at a glance

With constructional works cover a German exporter can insure the typical risks arising in connection with the performance of construction contracts abroad.

Target group

German building contractors

Insurable risks

Constructional works cover offers protection against the following causes of loss

• non-payment of the amounts owing under a supplies/services contract due to insolvency of the foreign buyer or his failure to make payment within 6 months after due date (protracted default) or because of warlike events or adverse measures taken by foreign governments
• risk of fair or unfair calling of a contract bond due to political reasons or, in absence of political reasons, risk of unenforceability of the claim to reimbursement of the guaranteed amount
• unacceptability of performing the constructional works contract due to the occurrence of political risks (e.g. war) or commercial risks abroad (e.g. insolvency of the buyer), in view of the costs accruing in connection with the setting up of the construction site as well as the storage of construction site equipment and material
• confiscation or destruction of construction equipment and the related spare parts due to political reasons

Cover options

• Constructional works cover on near cash terms (CW cover)
  Suitable for constructional works contracts where the entire amount receivable will be paid continuously on the basis of progress reports. Without any additional premium being charged cover for contract bonds which must be provided by the building contractor, with the exception of the bid bond (see contract bond cover) and cover of installation/construction equipment (equipment cover) are included.
• Constructional works cover on credit terms
  The rules for supplier credit cover apply.
• Supplemental Cover
  Additional cover of the following risks is available:
  • Construction equipment storage cover 
  • Spare parts stockpiling cover
  • Site erection cost cover
  • Stockpiling cost cover
  • Separate construction equipment cover (for a single construction site)
  • Global construction equipment cover
  • Contract bond cover (in connection with CW cover for bid bonds only since cover of all other contract bonds is already included)
  • Cover under a maximum exposure limit for receivables due from supplementary services performed under constructional works contracts after conclusion of contract

Premium

An individually calculated percentage depending on the form of cover as well as specific processing fees

Uninsured portion

Specific arrangements for each form of cover

This product can be applied for online.

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