Owner / developer liability
The builder’s liability insurance protects the policyholder in the event that he causes damage to a third party as the builder and/or owner of the building to be constructed and is held liable for this under the statutory liability provisions.
The builder’s liability insurance protects you against the consequences of your legal liability as the owner of the building site and the building to be constructed, as well as the execution of the construction project.
Tailored to your needs
What coverages are possible?
- What does the builder’s liability insurance cover?
- This builder’s liability insurance covers you for material and personal damages that you may cause to a third party involuntarily, by accident, omission or negligence in the development of your work
- The ownership of the land destined for the urbanisation and the works carried out on it
- Transport, loading and unloading of materials
- Damage to underground or overhead activities, provided that such damage is duly notified to the competent authority
- Acts of architects, engineers and other technicians working in this field
- Damage caused by subcontractors
- Damage to adjacent buildings
- Disposal after demolition
- Contamination
- In addition, legal and extrajudicial defence costs in connection with insured claims are covered
- The following documents are required after completion of the process
- Building value, i.e. the total cost of the construction, including taxes, fees and charges
- Description of the building (Memoria de Obra)
- Construction budget
- Duration of the construction phase (Duration of work)
- Ten-year (Decenal)
- Geotechnical study
- Project licence
- Control report from a recognised construction control company (OCT – Organismo de Control Técnico)
Seguro de Responsabilidad Civil de construcción
(Construction Liability Insurance)
Whether you are a builder or a developer, it is important to carry non-contractual liability insurance (known as general liability). Although it is not compulsory insurance, it is vital to protect your assets.
You should be aware that, whether or not you have this insurance, you will be liable for the damages you cause to third parties in the exercise of your activity. Damage in the construction sector, due to its potential amount, can potentially bankrupt your company if you do not have insurance cover.
Frequently asked questions
How much does builder's liability insurance cost?
How much does builder's liability insurance cost?
The price of builder’s liability insurance depends on the type of policy taken out, the additional cover included and the capital sums contracted.
At Bohemia Mallorca we thoroughly investigate each project and do not offer fixed or approximate premiums. So you always pay according to the risks.
Do I need insurance if I want to build on my own?
Do I need insurance if I want to build on my own?
Definitely yes, because during the execution of a construction project there are incidents and damages to third parties that are difficult to avoid. In fact, the subsidiary responsible for damages is always the project promoter, which is why it is important to take out civil liability insurance.
It should also be borne in mind that all persons involved in the works must provide a copy of their insurance and proof of timely payment, as the person who has directly caused the damage is also liable.
Therefore, if all persons involved have insurance, the work will be better covered.
I have a plot of land on which I want to build. Do I need insurance?
I have a plot of land on which I want to build. Do I need insurance?
Yes, you must have insurance to respond to damages to third parties that may occur, for example, due to the fall of a billboard.
When is the developer's insurance paid for?
When is the developer's insurance paid for?
Lump sum or full payment is due at the time of signing the contract.
I have rented premises for the storage of machinery. Does the promoter's civil liability insurance cover any damage that may occur on the premises?
I have rented premises for the storage of machinery. Does the promoter's civil liability insurance cover any damage that may occur on the premises?
Yes, material damage that may be caused to the property rented by the insured is covered.
When should I take out builder's liability insurance?
When should I take out builder's liability insurance?
The question is not when, but whether the work is continuous or one-off. Although there is no legal deadline, it would be important to take out the policy before work begins, bearing in mind that the developer is legally liable for any material or personal damage that a third party may suffer from the moment the land is acquired.
Should I require liability insurance for my subcontractors?
Should I require liability insurance for my subcontractors?
Yes, it is important to minimise the risk and their subsidiary liability.
