top of page
shadow ready-web-FF.png


Insurance for National Outline Plan 38 (2) projects. A complex project needs wide insurance and…an expert insurance agent.

Policies covering National Outline Plan 38 (2) projects, contrary to most insurance policies covering urban renewal projects, appear to be quite straightforward, in precisely the same way as projects of this type are portrayed as being straightforward projects involving standard construction.

In practice, in many cases, the execution of such projects involves extraordinary and special risks, and to counteract them there is a need for unique insurance solutions that are tailored to numerous variables and factors that have a decisive impact on the project. In turn, all of these have an impact on the insurance cover that the insurance company is willing to provide.

In order to clarify this important point we suggest considering the matter from two standpoints:

  • Firstly, what deters the insurance from selling a no-frills policy without going into detail in every clause, including exclusions to the cover, applying restrictive and onerous conditions, subjectivities and protection warranties?

  • Secondly, how it is possible and appropriate to prepare, plan and cope with the insurance company in order to obtain wide insurance cover commensurate with the real risks arising from the project, your requirements and your budget?

To obtain a quotation for insurance cover tailored to your needs

Please contact me directly
Itzick Simon

The reasons why the insurance companies are very cautious when issuing policies for national outline plan 38-2 projects

The insurance companies adopt an extremely cautious approach to these types of projects in view of the high risk level that all urban renewal projects have in common compared to other regular construction projects and they need to be covered by various insurance policies such as Contractors All Risks. National Outline Plan 38(2) projects involving demolishing the existing building and reconstructing a new building in its place. If the building that is slated for demolition is isolated from the nearby buildings or traffic – then the risks could be normal. However, in most cases that is not the case.

Working in a dense urban environment
Urban renewal projects usually involve buildings in city centres. The risk of damage to neighbouring buildings during demolition works, especially so in the case of buildings with party walls where one side of the entire building is being demolished (such as in the Florentine neighbourhood of Tel Aviv) increases the risk level and the likelihood of insurance claims.

Closing traffic arteries and logistical arrangements
In many cases the Israel Police needs to be involved in order to close roads and divert traffic to enable heavy equipment to move around and prevent hazards to residents of neighbouring buildings or passers-by during the course of the demolition works. It is also sometimes necessary to temporarily close shops and other businesses in neighbouring buildings in order to avoid harming the owners of the business and the general public. The need to make prior arrangements in these areas means that the scope of the risks that need to be covered under a policy covering National Outline Plan 38-2 projects is wider.

Engineering solutions for parking needs
The buildings which are slated for demolition are quite often situated in small areas. National Outline Plan 38-2 projects usually require the principal to supply a parking space to each resident, thereby necessitating engineering solutions such as excavating underground car parks and/or automated (stacked) parking systems also involving underground digging, thereby creating a risk to adjacent buildings due to potential vibration, removal of support and weakening as well as the risk of damage to municipal infrastructures.

Reaching underground water when constructing deep foundations
In various urban situations (such as complete roads in the Tel Aviv area) – there is a significant limitation concerning the depth of underground excavations arising from risks of reaching underground water which necessitates dewatering. This is complex work involving numerous and diverse risks of major third party claims. It is no surprise that the insurance companies, who have seen quite a number of claims of this type over the years – usually refuse to insure projects involving dewatering works, depending on an in-depth analysis of a geotechnical report addressing soil mechanics, in order to ensure that the depth of the excavations do not go below the water table.
Timetables and overheads
These aspects of the project have a significant impact both on the proper design and planning of the project and the overheads involved in executing it, as well as on making preparations for undertaking a geotechnical report at preliminary stages and feasibility studies for the project insurance. It should be borne in mind that dealing with these issues shortly before the construction commences (or in some cases even after it has commenced) – can disrupt compliance with the timetable of the project (the Gantt chart) and lead to gaps in the insurance cover and protracted processes to arranging the insurance, with the immense potential financial impact of such delays.

Finally – the unexpected
To sum-up this section we would emphasise that projects of this type are characterised, to a great extent, by the unexpected. The insurance companies are well aware of this fact and this is the reason why they display even more caution and apply increased premiums.
It is therefore clear that professional and skilled guidance in the process of arranging insurance can avert serious problems and significant losses due to the failure to take into account the range of considerations and potential problems we have addressed above….


A leading insurance agency
Our continual efforts over the last 25 years to position ourselves as the leading insurance agency in the field of construction insurance has paid off and we have develop close relations and mutual trust with the insurance companies we represent, based on professionalism, transparency and integrity and this places us in an excellent position to formulate adequate insurance solutions.

Vast experience and knowledge
After reading the above, you undoubtedly understand the importance of accumulative knowledge in dealing with the complex aspects of construction project insurance. We are pleased to share our experience and knowledge with our clients who benefit from extensive cover in construction projects they conduct all over Israel.
Reduced costs
Asides our experience and knowledge to streamline the process of arranging an insurance policy covering National Outline Plan 38-2 projects with extensive cover and protection warranties than can be easily implemented – we also aim to reduce costs as far as possible.

Extensive insurance cover
Asides the complex process of arranging the insurance policy, aspects of which we have already addressed, we strive to devise a policy for our clients that closes all possible gaps. A combined policy covering all of the risks involved in contract works, tailored to the requirements of our clients involved in National Outline Plan 38-2 projects.

אייקון בין שתי ידיים תמ"א 38

Fast response time
Obtaining a quotation for National Outline Plan 38-2 projects can take some time due to the need to make extensive enquiries, asides the long period of time sometimes required to issue complex projects of this type. Despite all of this – we have the ability to handle everything in a time-efficient manner.

Close guidance and assistance
We aim to be available at all times and especially in the event of a claim to provide you with close professional guidance and access to a team of insurance experts to assist you in fully exercising your rights under the policy.

For information or details about the type of insurance required, 

please fill out the form and we will contact you shortly

Insurance for reinforcement of buildings against earthquake

Projects involving reinforcing buildings against earthquake are included in the list of projects that the insurance companies view as high risk. Therefore, contrary to regular contract works projects which do not involve special works such as reinforcement, it is important to arrange a policy with suitable cover for reinforcement against earthquake. It should be borne in mind that the insurance companies are not very keen on such policies.

Demolition and rebuilding projects 

Demolition and Rebuilding Projects are usually quite complex to execute for various reasons. Firstly, such projects are usually quite extensive and involve demolishing and evicting hundreds or even thousands of tenants and hence the scope of the works increases the likelihood of insurance claims. Secondly, projects of this scope necessitate closing major roads and traffic diversions and involvement by the police in order to enable heavy equipment vehicles to reach the construction site. These logistical arrangements need to be covered.

Insurance for the preservation and restoration of buildings

Insurance for projects involving the preservation and restoration of buildings are subject to high level of risks and the potential for major claims. In addition to the numerous risks, such projects involve old buildings with weak foundations which are sometimes quite dilapidated, in addition to which there is a need to comply with various statutory requirements relating to the preservation and restoration of buildings. Both of these factors are reasons why insurance companies are not very keen on such policies.

Professional indemnity insurance

Professional Indemnity insurance provides you with insurance cover in the event of claims arising from errors or omissions leading to financial loss such as delays in the hand-over of the building or individual apartments as a consequence of an insured event or a claim for financial compensation due to defective execution of the works. In practice, surprises can pop-up from various directions and hence….

תמונה של קבלן עם תוכניות

National outline plan 38 project safety

National Outline Plan 38 projects by their inherent nature involve workers coming into constant contact with the residents. The site foreman does not have the authority or ability to supervise the residents who are also unaware of the risks arising from active construction sites. Therefore, as regards safety – the residents are the weak link in the chain and exposed to numerous risks. National Outline Plan 38 projects are in any case quite complicated, so why increase the problems and risks?

Do you need insurance for a National Outline Plan 38-2 project?
Call us on 972-3-6951414
contact us by e-mail:
or complete the form and we will contact you as soon as possible.

Surveys to document 

adjacent buildings

A survey to document the condition of neighbouring buildings before the project commence facilitates determining, in the event of any damage to neighbouring buildings, to what extent, if at all, the works have contributed to these damages and that is why it is critical to arrange a survey before starting the project….

​Insurance companies commission specialist surveyors with experience in the construction industry to conduct surveys and to determine protection measures to mitigate the risk of injury to any employee or third party during the project. The survey will sometimes have an impact on the way the work is performed, and in the event of a claim, failure to comply with the policy warranties can even lead to loss of the insurance cover and so…

bottom of page