Professional Indemnity Insurance for Construction Managers
This information document only specifies the main aspects of the insurance, such as what is included and what is not. It is not an exhaustive list or a personal overview of the insurance that customers choose. The information document has no legal significance and is intended solely to inform customers about the main aspects of the insurance. The insurance summary and detailed information on the applicable contract terms are available on the insurance policy, which can be accessed on Vörður’s My Pages. The terms and conditions of the insurance contain comprehensive information about the insurance coverage and are a part of the agreement between the parties together with the insurance certificate.
What kind of insurance is Professional Indemnity Insurance for Construction Managers?
Building managers are required to purchase and maintain professional liability insurance in accordance with the Building Act No. 160/2010. The professional liability insurance for building managers is intended to compensate for general financial losses that may arise in connection with construction projects for which the building manager has undertaken responsibility.
What Is Covered?
Liability that falls on the insured, when a third person suffers general financial loss, due to the insured's neglect of their duties, cf. Art. 29 of the Act on Constructions no. 160/2010.
What Is Not Covered?
Loss or damage attributable to the intention of the insured person or their employees.
Loss or damage that can be attributed to the fact that the insured takes on a greater responsibility than their general liability as construction manager.
Fines and other penalties levied against the insured party or third person.
Personal injury or property damage.
The operation of the insured outside of Iceland or wider liability than the Icelandic law on liability or compensation amounts call for.
Are there any restrictions or precautionary rules?
The insured is required to comply with Vörður's precautionary rules.
Where is the insurance valid?
The insurance only covers damage that occurs in Iceland as a result of the insured’s professional activities in Iceland.
What are the insured's obligations?
To provide all necessary information, whether at renewal, when making changes to the insurance, or when submitting a claim.
As soon as the insured becomes aware of, or suspects, that a claim for damages may be made against them, they must notify the insurer in writing.
If there are any changes to circumstances or information that have been disclosed to the insurer in the insurance application or otherwise, the policyholder must inform the insurer of such changes.
When and how is the insurance paid for?
The insurance premium must be paid on the due date. Upon renewal, the annual premium is adjusted in accordance with changes in the index from the base index of the agreement. Vörður sends payment claims monthly to online banking services, or annually if the policyholder prefers to pay the premium in a single installment. It is possible to change the payment method via Vörður's online service, “My Pages.” There, policyholders can also choose to pay premiums using a credit card.
When Does the Insurance Coverage Begin and How Does It End?
Insurance contracts generally apply for 12 months from acceptance of the offer and issuance of the policy, with premiums based on an annual premium. If the insurance is not terminated during that period, it is automatically renewed.
How is the insurance terminated?
The insurance can be terminated at any time during the insurance period.