{"id":7502,"date":"2018-11-05T12:08:30","date_gmt":"2018-11-05T12:08:30","guid":{"rendered":"https:\/\/www.italiafideiussioni.it\/insurance-surety-for-public-contracts\/posthumous-decennial-policy-and-c-a-r-policy-for-contracts\/"},"modified":"2024-05-10T11:44:22","modified_gmt":"2024-05-10T11:44:22","slug":"posthumous-decennial-policy-and-c-a-r-policy-for-contracts","status":"publish","type":"page","link":"https:\/\/www.italiafideiussioni.it\/en\/insurance-surety-for-public-contracts\/posthumous-decennial-policy-and-c-a-r-policy-for-contracts\/","title":{"rendered":"Posthumous Decennial Policy and C.A.R. Policy for Contracts"},"content":{"rendered":"

What is a CAR policy? And what does the CAR policy cover?<\/strong><\/p>\n

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The CAR policy<\/b>, an acronym for C<\/strong>ontractor’s A<\/strong>ll R<\/strong>isks, is an insurance policy that protects the company and its partners from compensation<\/b> for material and direct damage that the construction site, the building under construction, and the equipment might suffer. Thanks to the liability policy towards third parties, it also covers injuries or deaths of people working there or who may be involved, until the end of the works, thus covering “all the risks of the builder”.<\/span><\/span><\/div>\n
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Both the CAR policy and the indemnity posthumous decennial policy are mandatory. The new Code of Contracts under Article 103, paragraph 8, requires a ten-year posthumous insurance policy that must not be less than 20% of the value of the works performed:<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

Art. 103 Legislative Decree No. 50\/2016<\/p>\n

“8. For works exceeding twice the threshold referred to in Article 35, the contract holder for the settlement of the final installment is obliged to sign, from the date of issuance of the provisional acceptance certificate or the certificate of regular execution, or in any case twelve months from the date of completion of the works as per the related certificate, a ten-year indemnity policy covering the risks of total or partial ruin of the work, or the risks arising from serious construction defects. The policy must provide for the payment of the indemnity contractually due in favor of the client as soon as it is requested, even pending the determination of responsibility and without the need for consents and authorizations of any kind. The indemnity limit of the ten-year policy must not be less than twenty percent of the value of the work performed and not exceed forty percent, in respect of the principle of proportionality regarding the nature of the work. The executor of the works is also obliged to sign, for the works referred to in this paragraph, a liability insurance policy for damages caused to third parties, from the date of issuance of the provisional acceptance certificate or the certificate of regular execution and for a duration of ten years and with an indemnity equal to 5 percent of the value of the work performed with a minimum of 500,000 euros and a maximum of 5,000,000 euros.”<\/em><\/p>\n

How much does the Posthumous Decennial Policy cost?<\/strong><\/p>\n