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Before starting a new project, we have been asked to excavate and clear a large sand mound. At this stage we have been told to arrange Contractors All Risks insurance for the earthworks only. What is the procedure?


Specific insurance for earthworks before starting the actual construction works


We urge you to think ahead: Many contractors and developers make the unfortunate mistake of arranging partial insurance for the initial stages of a project without arranging a full policy to cover the entire project from the outset. This is a big mistake that can cost you dearly.

As a specialist Contractors All Risks insurance agency that has been in business for more than 37 years, we unequivocally recommend arranging insurance for the whole project, even if you’re “only” doing preliminary works such as earthworks, excavations and the like. Tight timetable? Economic considerations? Don’t cut corners.

Keep in mind that partial insurance is usually based on a low contract value and when push comes to shove you may well find that the cover is inadequate, since some of the liability coverage limits are based on the value of the works insured.


In many cases, partial insurance will not provide a sufficient limit for Third Party Liability cover and any ensuing National Insurance Institute subrogation claims arising from work accidents at the site, especially in the case of severe injuries due to work accidents leading to claims for millions of shekels, or major damage to the site. To read about a contractor who found himself underinsured to the tune of NIS 4 million “only” because of pile walls that were found to be too short click here.

Furthermore, in the event of an insurance claim, it is quite possible that the contractor or the developer will have difficulty arranging insurance for the whole project at a later stage. In mid-2024, we are going through a period in which both local and international insurance companies are adopting an extremely selective approach to insurance for the construction industry in general, and Israel in particular.

Insurance companies may be deterred from covering projects with a history of problems at early stages, and projects that didn’t start off on the right foot are less attractive. In the best scenario the premium may be high and the cover limited, in the worst scenario it may be difficult to arrange insurance at all.

If the contractor or the developer decides nonetheless to only cover the preliminary works, we recommend doing so with prudence and care, by ensuring that the limits under the Third Party Liability section are adequate and ensuring that the equipment being used for the works is covered under statutory motor bodily injury insurance. However, to make sure that you are fully protected, we highly recommend arranging full insurance for the entire project at the outset.

Do you need genuine insurance cover for your project?
Call us on 03-6951414
contact us by e-mail:
or complete the form and we will contact you as soon as possible.

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