Technical Lines:

Construction All-Risk Insurance

Construction All-Risk insurance is designed to protect contractors, builders, developers, and project owners against material damage and losses resulting directly from accidental and unforeseen causes affecting civil works and installations during construction.

Its primary objective is to protect the investment by minimizing the risks and financial impact of potential losses.

Examples of insurable projects include buildings, industrial facilities, airports, bridges, ports, irrigation canals, etc.

Although typically purchased by the contractor, the policy may also be taken out by any party involved in the project, such as the developer, the subcontractors, etc.

Coverage applies from the start of construction through completion and generally includes a 12-month maintenance period after project completion.

Most Common Coverages:

• Fire
• Explosion
• Lightning
• Natural perils (flood, earthquake, volcanic eruption, abnormal rainfall, hail, snow, etc.)
• Theft of stored materials
• Strike, riot, and civil commotion
• Terrorism
• Debris removal and/or demolition following a covered loss
• Damage occurring during the maintenance period
• Professional fees

Ten-Year Structural Warranty Insurance

According to the Building Act (Law 38/1999 of 5 November on Building Regulation (Official State Gazette of 6 November 1999), covering the guarantee provided for in Article 19.1.c and entering into force on 6 May 2000), ten-year structural insurance is compulsory for all buildings intended for residential use and is taken out by the developer.

Although not mandatory for individuals building a single-family home for personal use, it is highly recommended. If the property is sold within the first 10 years, this insurance is required for registration in the Land Registry.

This policy covers material damage resulting from defects affecting the structural elements of the building that compromise its mechanical resistance and stability for 10 years following completion and delivery.

 Most Common Coverages:

• Structural defects affecting mechanical resistance and stability
• Demolition and debris removal expenses following a covered loss
• Automatic indexation of insured sums
• Waterproofing of roofs and terraces
• Waterproofing of façades
• Waterproofing of basements
• Waiver of recourse against contractor and/or main builder
• Waiver of recourse against project designer and/or supervising architect
• Damage to pre-existing property

Cyber Risk Insurance

Cyber Risk insurance protects insureds against claims and damages resulting from cyberattacks or privacy breaches, including coverage for regulatory fines imposed by the Spanish Agency of Data Protection (AEPD).

It is suitable for any individual or organization that processes personal data.

This type of risk arises and materialises as a result of unauthorised access to a company’s information systems (databases, software, hardware, mobile devices, etc.), whereby its operations and assets may be affected in the form of liabilities or losses.

Losses will be quantified based on the expenses and financial losses incurred by the company’s operations until the situation prior to the occurrence of a cyber risk claim is restored.

Most Common Coverages:

• Multimedia Liability

Coverage for claims related to defamation, invasion of privacy, plagiarism, piracy, copyright infringement, infringement of the right to privacy, etc.

• Privacy and Data Security Liability

Civil liability and defence costs arising from a breach of network security or violation of privacy, such as the deletion of electronic data on a computer network, unauthorised disclosure of data or private information, failure to prevent the transmission of malicious code or computer viruses on a computer network, etc.

• Crisis management expenses, client notification costs, credit monitoring expenses and recovery costs.

Expenses associated with hiring a public relations consultant. Expenses incurred in complying with privacy legislation regarding client notification. Customer service expenses and the provision of credit file monitoring services.

• Cyber Extortion

Amounts paid in response to cyber threats..

• Data Recovery & Business Interruption
• Defense Costs & Regulatory Fines

Machinery Breakdown Insurance

Machinery breakdown insurance covers material damage and losses caused by sudden, accidental, and unforeseen events affecting insured machinery.

By way of example, causes may include a short circuit or other electrical cause, lubrication defects, abnormal stresses, overheating, as well as negligence, drops or impacts, etc.

Most Common Coverages:

• Operator error
• Negligence
• Malicious acts
• Design, calculation, or assembly defects
• Pressure failure or lack of water in boilers
• Electrical failure
• Impact, collision, obstruction, or foreign object entry
• Failure of control devices

Optional coverage may include:

• Additional costs for overtime, night or holiday work, or expedited freight charges

Electronic Equipment

Electronic equipment insurance covers accidental damage to equipment such as personal computers and peripherals (monitors, printers, scanners, etc.), data processing equipment, radio and television systems, etc.

Coverage applies to both internal malfunctions and external damage.

Most Common Coverages:

• Operator error
• Negligence
• Operational errors
• Fire
• Theft
• Lightning
• Explosion