Compulsory Professional Liability of Participants in Construction Insurance pursuant to Art. 171 of the Spatial Development Act
This insurance is pursuant to Art. 171 of the Spatial Development Act and the Ordinance on the Terms and Procedure for Compulsory Insurance in Design and Construction, effective from 06.03.2004.
Professional Liability of Participants in Design and Construction Insurance is mandatory for every person involved in one or more of the following activities:
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The designer responsible for drafting the investment projects
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The builder responsible for the overall execution of the construction works or for individual construction and installation works
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The consultant responsible for:
– carrying out the assessment of compliance of the investment projects with the essential requirements to construction sites
and/or
– exercising construction supervision
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The person exercising construction supervision of construction sites of category V
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The person exercising technical control under the Constructive part of the investment projects for which a compliance assessment is not performed by a consultant
The insurance provides protection, in the event of third-party claims for damages incurred/injuries suffered as a result of unlawful actions and/or omissions of the insured during the exercise of his/her professional activity. The insurer indemnifies against both property damage (full or partial damage to real or personal property) and non-material damage (as a result of death or physical injuries suffered by individuals) that occurred during the insurance period. When the claim is filed through court proceedings, the compensation includes also the legal costs if the insurer participated in the process.
The damages are indemnified on the basis of claims filed for the first time in writing during the insurance period, provided that the actions and/or omissions of the insured which caused the damages are carried out after the insurance policy starting date or after the retroactive date entered into the policy.