Construction insurance runs in two modes: a policy for a single project, or an annual open cover for all of the company's work. Both follow the same cover logic – but the actual content of the cover can differ: an open cover typically works with standard terms and a per-project value limit, while a project policy can be tailored to the specific job. The choice isn't a matter of taste, but of work organisation.
- Project policy: one job, one-off inception – the natural route for large, one-off projects.
- Annual open cover: typically a turnover-based contract that covers jobs starting during the year according to the notification rules.
- The open cover's strength is continuity – its risk is a missed notification.
- A large project outside the scope of the open cover can still call for its own separate policy alongside it.
When does a project policy fit?
When the company runs one or two larger, clearly defined jobs a year, or when a single outlying project (in value, technical content or duration) breaks the usual pattern. We tailor the project policy to that specific job: exact value, exact period, extensions matched to the site. This is also the typical route for tenders, since the tender documentation often expects a project-specific certificate – details: certificate in the tender.
When does the annual open cover fit?
When jobs run continuously – roof renovations, façades, utility connections, back-to-back contracting jobs – arranging a policy job by job is slow, administrative, and easy to leave gaps in. The annual open cover turns this around: the contract fixes the terms in advance, typically on a turnover or job-count basis, and jobs that start are brought into cover according to the notification rules. So the open cover doesn't "cover everything automatically": following the rules – what to notify, when and how – is the heart of the arrangement.
The open cover's typical pitfalls
There are three recurring mistakes. The first is a missed notification: the job starts, the notification slips, and that's exactly when the loss happens. The second is outgrowing the cover: the company grows, the turnover basis goes out of date, and the cover falls behind reality – which is why an review (if warranted or on request) is needed. The third is a change of profile: the open cover is written for the usual types of work, and an unusual project (different technology, greater depth, an operating facility) can fall outside it – in which case it needs discussing, or its own separate policy.
Help with deciding
The right question isn't "which is cheaper", but which follows the company's way of working more closely. A handful of large projects a year → project policy. Continuous, similar jobs → open cover. A mixed picture → open cover for the regular workload, a separate policy for the outlying project. It's worth seeing the numbers and terms from several insurers' competing quotes – the process page and the free consultation can help with that.
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