C.F./P.IVA 14269741006 | Codice Univoco: 5RUO82D | Numero Iscrizione IVASS A000573295 | R.E.A. RM 1508613
Technological Risks
Technological Risks
Technological risk refers to the danger to people and the environment that may arise from a range of production activities connected with work on infrastructure and technological networks.
The evolution of industrial activities and the increasingly sophisticated and complex nature of certain equipment and plants have led to the decision to group all the coverage needs for the damage to which these activities are exposed into a specific insurance Class.
Technological Risks
Technological risk refers to the danger to people and the environment that may arise from a range of production activities connected with work on infrastructure and technological networks.
The evolution of industrial activities and the increasingly sophisticated and complex nature of certain equipment and plants have led to the decision to group all the coverage needs for the damage to which these activities are exposed into a specific insurance Class.
Technological risk refers to the danger to people and the environment that may arise from a range of production activities connected with work on infrastructure and technological networks.
The evolution of industrial activities and the increasingly sophisticated and complex nature of certain equipment and plants have led to the decision to group all the coverage needs for the damage to which these activities are exposed into a specific insurance Class.
The CAR (Contractors’ All Risks) policy is an “all risks” insurance cover for companies carrying out construction or infrastructure works, such as road, bridge and dam builders, that are awarded public contracts. It aims to shorten waiting times throughout the underwriting process. Its advantages include full coverage of the insured property during the construction phase against damage caused by external factors (theft, fire, weather events and socio-political events) and internal factors (accidents, design and calculation errors). However, the policy allows you to choose which events to exclude.
With regard to public contracts, the new Public Contracts Code (Legislative Decree 36/2023) does not contain a specific provision governing CAR (Contractors’ All Risks) policies, unlike Article 129 of the former Legislative Decree 50/2016. However, the contractor’s obligation to take out a policy covering all risks arising from the execution of the works, excluding only those caused by design errors or deficiencies, acts of third parties and force majeure, has been retained in Article 117, paragraphs 10 and 11.
The coverage must include:
- direct material damage to the works during their execution;
- third-party liability (TPL) for damage caused during execution, until the issue of the testing certificate or certificate of proper execution.
In addition, for works with a value exceeding twice the thresholds set out in Article 14, the contractor must take out a ten-year TPL policy covering damage from partial or total collapse or serious construction defects.
ARTICLE 117, paragraphs 10 and 11, Legislative Decree 36/2023:
“10. At least ten days before the handover of the works, the contractor shall also provide the contracting authority with an insurance policy covering the damage suffered by contracting authorities as a result of damage to, or the total or partial destruction of, installations and works, including pre-existing ones, occurring during the execution of the works. The tender or award documents shall set the sum to be insured, which shall normally correspond to the contract value, unless there are specific, justified circumstances requiring a higher insured sum. The policy under this paragraph shall insure the contracting authority against civil liability for damage caused to third parties during the execution of the works, with a limit of 5 percent of the sum insured for the works, subject to a minimum of €500,000 and a maximum of €5,000,000. Coverage shall begin on the date of handover of the works and shall end on the date of issue of the provisional acceptance certificate or the certificate of proper execution, or in any case twelve months after the date of completion of the works stated in the relevant certificate. Where a warranty period is provided for, the insurance policy shall be replaced by a policy holding contracting authorities harmless against all risks connected with the use of the works under warranty or with any work to replace or redo them. Failure or delay by the contractor in paying sums due as premium or commission shall not render the guarantee ineffective with respect to the contracting authority.
- For works with a value exceeding twice the threshold referred to in Article 14, in order to obtain payment of the final installment, the contract holder shall take out a ten-year indemnity policy covering the risks of total or partial collapse of the works, or the risks arising from serious construction defects, effective from the date of issue of the provisional acceptance certificate or the certificate of proper execution, or in any case twelve months after the date of completion of the works stated in the relevant certificate. The policy shall provide for payment of the contractually due indemnity to the client as soon as the client so requests, even while liability is still being determined and without any consent or authorization of any kind being required. The indemnity limit of the ten-year policy shall be no less than 20 percent and no more than 40 percent of the value of the completed works, in accordance with the principle of proportionality and having regard to the nature of the works. For the works referred to in this paragraph, the contractor shall also take out a civil liability insurance policy for damage caused to third parties, effective from the date of issue of the provisional acceptance certificate or the certificate of proper execution, for a period of ten years and with an indemnity equal to 5 percent of the value of the completed works, subject to a minimum of €500,000 and a maximum of €5,000,000.”
The CAR policy for private works is a voluntary but highly recommended cover for construction companies. This insurance protects the builder against risks arising during the execution of civil or industrial works. The main covered events include:
* fires, theft, weather events (hurricanes, tornadoes, floods), landslides and earthquakes;
* execution or installation errors;
* demolition, clearance and reconstruction costs;
* damage to pre-existing installations and structures;
* damage unintentionally caused to third parties during the works (TPL).
For private works there is no general legal requirement to take out a CAR policy, but it is often required by clients, banks or investors as a prerequisite for starting work on site.
The ten-year post-completion liability policy is compulsory insurance for works with a value exceeding twice the thresholds set out in Article 14, covering the contractor’s ten-year liability under Article 1669 of the Italian Civil Code. Article 119 of the Public Contracts Code (Legislative Decree 36/2023) requires contractors on above-threshold public contracts to provide ten-year post-completion coverage and ten-year TPL coverage from the completion of the works (issue of the testing certificate or certificate of proper execution).
It protects the contracting authority against:
* total or partial collapse of the works;
* serious construction defects, for a period of 10 years from the date of completion.
Current regulatory references:
* Legislative Decree 36/2023, Article 117 – “Guarantees and insurance coverage”
* Italian Civil Code, Article 1669 – “Collapse and defects of immovable property”
* Implementing regulations and decrees of the Ministry of Infrastructure and Transport (MIT) setting the applicable economic thresholds
A specialist approach, in-depth knowledge of the insurance market and tailored solutions: these are the strengths that make Olimpia Cauzioni a solid, reliable partner, able to support businesses in protecting their projects and growing their operations.
The CAR (Contractors’ All Risks) policy is an “all risks” insurance cover for companies carrying out construction or infrastructure works, such as road, bridge and dam builders, that are awarded public contracts. It aims to shorten waiting times throughout the underwriting process. Its advantages include full coverage of the insured property during the construction phase against damage caused by external factors (theft, fire, weather events and socio-political events) and internal factors (accidents, design and calculation errors). However, the policy allows you to choose which events to exclude.
With regard to public contracts, the new Public Contracts Code (Legislative Decree 36/2023) does not contain a specific provision governing CAR (Contractors’ All Risks) policies, unlike Article 129 of the former Legislative Decree 50/2016. However, the contractor’s obligation to take out a policy covering all risks arising from the execution of the works, excluding only those caused by design errors or deficiencies, acts of third parties and force majeure, has been retained in Article 117, paragraphs 10 and 11.
The coverage must include:
- direct material damage to the works during their execution;
- third-party liability (TPL) for damage caused during execution, until the issue of the testing certificate or certificate of proper execution.
In addition, for works with a value exceeding twice the thresholds set out in Article 14, the contractor must take out a ten-year TPL policy covering damage from partial or total collapse or serious construction defects.
ARTICLE 117, paragraphs 10 and 11, Legislative Decree 36/2023:
“10. At least ten days before the handover of the works, the contractor shall also provide the contracting authority with an insurance policy covering the damage suffered by contracting authorities as a result of damage to, or the total or partial destruction of, installations and works, including pre-existing ones, occurring during the execution of the works. The tender or award documents shall set the sum to be insured, which shall normally correspond to the contract value, unless there are specific, justified circumstances requiring a higher insured sum. The policy under this paragraph shall insure the contracting authority against civil liability for damage caused to third parties during the execution of the works, with a limit of 5 percent of the sum insured for the works, subject to a minimum of €500,000 and a maximum of €5,000,000. Coverage shall begin on the date of handover of the works and shall end on the date of issue of the provisional acceptance certificate or the certificate of proper execution, or in any case twelve months after the date of completion of the works stated in the relevant certificate. Where a warranty period is provided for, the insurance policy shall be replaced by a policy holding contracting authorities harmless against all risks connected with the use of the works under warranty or with any work to replace or redo them. Failure or delay by the contractor in paying sums due as premium or commission shall not render the guarantee ineffective with respect to the contracting authority.
- For works with a value exceeding twice the threshold referred to in Article 14, in order to obtain payment of the final installment, the contract holder shall take out a ten-year indemnity policy covering the risks of total or partial collapse of the works, or the risks arising from serious construction defects, effective from the date of issue of the provisional acceptance certificate or the certificate of proper execution, or in any case twelve months after the date of completion of the works stated in the relevant certificate. The policy shall provide for payment of the contractually due indemnity to the client as soon as the client so requests, even while liability is still being determined and without any consent or authorization of any kind being required. The indemnity limit of the ten-year policy shall be no less than 20 percent and no more than 40 percent of the value of the completed works, in accordance with the principle of proportionality and having regard to the nature of the works. For the works referred to in this paragraph, the contractor shall also take out a civil liability insurance policy for damage caused to third parties, effective from the date of issue of the provisional acceptance certificate or the certificate of proper execution, for a period of ten years and with an indemnity equal to 5 percent of the value of the completed works, subject to a minimum of €500,000 and a maximum of €5,000,000.”
The CAR policy for private works is a voluntary but highly recommended cover for construction companies. This insurance protects the builder against risks arising during the execution of civil or industrial works. The main covered events include:
* fires, theft, weather events (hurricanes, tornadoes, floods), landslides and earthquakes;
* execution or installation errors;
* demolition, clearance and reconstruction costs;
* damage to pre-existing installations and structures;
* damage unintentionally caused to third parties during the works (TPL).
For private works there is no general legal requirement to take out a CAR policy, but it is often required by clients, banks or investors as a prerequisite for starting work on site.
The ten-year post-completion liability policy is compulsory insurance for works with a value exceeding twice the thresholds set out in Article 14, covering the contractor’s ten-year liability under Article 1669 of the Italian Civil Code. Article 119 of the Public Contracts Code (Legislative Decree 36/2023) requires contractors on above-threshold public contracts to provide ten-year post-completion coverage and ten-year TPL coverage from the completion of the works (issue of the testing certificate or certificate of proper execution).
It protects the contracting authority against:
* total or partial collapse of the works;
* serious construction defects, for a period of 10 years from the date of completion.
Current regulatory references:
* Legislative Decree 36/2023, Article 117 – “Guarantees and insurance coverage”
* Italian Civil Code, Article 1669 – “Collapse and defects of immovable property”
* Implementing regulations and decrees of the Ministry of Infrastructure and Transport (MIT) setting the applicable economic thresholds
A specialist approach, in-depth knowledge of the insurance market and tailored solutions: these are the strengths that make Olimpia Cauzioni a solid, reliable partner, able to support businesses in protecting their projects and growing their operations.
The CAR (Contractors’ All Risks) policy is an “all risks” insurance cover for companies carrying out construction or infrastructure works, such as road, bridge and dam builders, that are awarded public contracts. It aims to shorten waiting times throughout the underwriting process. Its advantages include full coverage of the insured property during the construction phase against damage caused by external factors (theft, fire, weather events and socio-political events) and internal factors (accidents, design and calculation errors). However, the policy allows you to choose which events to exclude.
With regard to public contracts, the new Public Contracts Code (Legislative Decree 36/2023) does not contain a specific provision governing CAR (Contractors’ All Risks) policies, unlike Article 129 of the former Legislative Decree 50/2016. However, the contractor’s obligation to take out a policy covering all risks arising from the execution of the works, excluding only those caused by design errors or deficiencies, acts of third parties and force majeure, has been retained in Article 117, paragraphs 10 and 11.
The coverage must include:
- direct material damage to the works during their execution;
- third-party liability (TPL) for damage caused during execution, until the issue of the testing certificate or certificate of proper execution.
In addition, for works with a value exceeding twice the thresholds set out in Article 14, the contractor must take out a ten-year TPL policy covering damage from partial or total collapse or serious construction defects.
ARTICLE 117, paragraphs 10 and 11, Legislative Decree 36/2023:
“10. At least ten days before the handover of the works, the contractor shall also provide the contracting authority with an insurance policy covering the damage suffered by contracting authorities as a result of damage to, or the total or partial destruction of, installations and works, including pre-existing ones, occurring during the execution of the works. The tender or award documents shall set the sum to be insured, which shall normally correspond to the contract value, unless there are specific, justified circumstances requiring a higher insured sum. The policy under this paragraph shall insure the contracting authority against civil liability for damage caused to third parties during the execution of the works, with a limit of 5 percent of the sum insured for the works, subject to a minimum of €500,000 and a maximum of €5,000,000. Coverage shall begin on the date of handover of the works and shall end on the date of issue of the provisional acceptance certificate or the certificate of proper execution, or in any case twelve months after the date of completion of the works stated in the relevant certificate. Where a warranty period is provided for, the insurance policy shall be replaced by a policy holding contracting authorities harmless against all risks connected with the use of the works under warranty or with any work to replace or redo them. Failure or delay by the contractor in paying sums due as premium or commission shall not render the guarantee ineffective with respect to the contracting authority.
- For works with a value exceeding twice the threshold referred to in Article 14, in order to obtain payment of the final installment, the contract holder shall take out a ten-year indemnity policy covering the risks of total or partial collapse of the works, or the risks arising from serious construction defects, effective from the date of issue of the provisional acceptance certificate or the certificate of proper execution, or in any case twelve months after the date of completion of the works stated in the relevant certificate. The policy shall provide for payment of the contractually due indemnity to the client as soon as the client so requests, even while liability is still being determined and without any consent or authorization of any kind being required. The indemnity limit of the ten-year policy shall be no less than 20 percent and no more than 40 percent of the value of the completed works, in accordance with the principle of proportionality and having regard to the nature of the works. For the works referred to in this paragraph, the contractor shall also take out a civil liability insurance policy for damage caused to third parties, effective from the date of issue of the provisional acceptance certificate or the certificate of proper execution, for a period of ten years and with an indemnity equal to 5 percent of the value of the completed works, subject to a minimum of €500,000 and a maximum of €5,000,000.”
The CAR policy for private works is a voluntary but highly recommended cover for construction companies. This insurance protects the builder against risks arising during the execution of civil or industrial works. The main covered events include:
* fires, theft, weather events (hurricanes, tornadoes, floods), landslides and earthquakes;
* execution or installation errors;
* demolition, clearance and reconstruction costs;
* damage to pre-existing installations and structures;
* damage unintentionally caused to third parties during the works (TPL).
For private works there is no general legal requirement to take out a CAR policy, but it is often required by clients, banks or investors as a prerequisite for starting work on site.
The ten-year post-completion liability policy is compulsory insurance for works with a value exceeding twice the thresholds set out in Article 14, covering the contractor’s ten-year liability under Article 1669 of the Italian Civil Code. Article 119 of the Public Contracts Code (Legislative Decree 36/2023) requires contractors on above-threshold public contracts to provide ten-year post-completion coverage and ten-year TPL coverage from the completion of the works (issue of the testing certificate or certificate of proper execution).
It protects the contracting authority against:
* total or partial collapse of the works;
* serious construction defects, for a period of 10 years from the date of completion.
Current regulatory references:
* Legislative Decree 36/2023, Article 117 – “Guarantees and insurance coverage”
* Italian Civil Code, Article 1669 – “Collapse and defects of immovable property”
* Implementing regulations and decrees of the Ministry of Infrastructure and Transport (MIT) setting the applicable economic thresholds
A specialist approach, in-depth knowledge of the insurance market and tailored solutions: these are the strengths that make Olimpia Cauzioni a solid, reliable partner, able to support businesses in protecting their projects and growing their operations.
Olimpia Cauzioni e Rischi Tecnologici – SRL
- Via della Farnesina 272 - 00135 Roma
- Info@olimpiacauzioni.it
- +39 06 94443175
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C.F./P.IVA 14269741006 | Codice Univoco: 5RUO82D | Numero Iscrizione IVASS A000573295 | R.E.A. RM 1508613
C.F./P.IVA 14269741006 | Codice Univoco: 5RUO82D | Numero Iscrizione IVASS A000573295 | R.E.A. RM 1508613