【Haichuan EPC】Important things are said three times! ! Don’t forget to purchase various relevant insurances before starting the project! ! ! !

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As the saying goes, it’s better to be prepared for the worst. That’s why we need to buy insurance whenever we go out; it’s not only people who need insurance, but also the projects we work on regularly that require insurance. Throughout the entire life cycle of construction projects, risks are present at every stage – from surveying and design, through construction and delivery, to operation – and insurance is an effective tool for transferring such project risks. Just like people and vehicles, people have insurance, and projects also have corresponding insurance. Insurances related to construction projects include: work-related injury insurance, all-risks insurance for construction projects, all-risks insurance for installation projects, third-party liability insurance, and safety production liability insurance. Work-related injury insurance is a **mandatory form of insurance for construction workers, designed to provide medical treatment and financial compensation in cases where workers suffer injuries due to work-related accidents (such as falls from heights or mechanical injuries) or contract occupational diseases (such as pneumoconiosis). It serves as a fundamental safeguard for workers in the construction industry. Regardless of the scale of the project or the type of workforce (full-time or temporary), employers are required to enroll their employees in insurance; failure to do so will result in administrative penalties ； Therefore, work-related injury insurance is a mandatory insurance that must be purchased. The policyholders for industrial and commercial insurance are generally employers such as general construction contractors and specialized subcontractors. Its drawback is that it covers only \"professionals involved in engineering projects\", and does not include engineering materials or losses to third-party property ； It is generally compensated according to the provisions of the Work-related Injury Insurance Regulations (for example, for grade 1 disability, 90% of the individual’s salary is paid on a monthly basis), and it has no direct connection with the cost of the project or the amount of damage caused by the accident. The insurance period coincides with the duration of the employment relationship, starting from the date when the employee begins working on the project and ending on the date of departure or completion of the project and withdrawal from the site; the list of insured persons must be updated accordingly as the workforce changes. Construction All Risks insurance, abbreviated as “Construction All Risks,” is the most comprehensive primary insurance policy for projects in commercial insurance. It covers material losses to the construction project resulting from natural disasters such as heavy rain or earthquakes, as well as accidents like fires or collapses. It also covers the reasonable costs associated with rescuing and repairing the project. The coverage includes the main structural elements of the project, temporary structures such as scaffolding and temporary shelters, as well as materials and equipment that have been delivered to the construction site; it even covers construction machinery and equipment, which is somewhat similar to an auto insurance policy for vehicle damage. However, the all-risks insurance for construction projects specifically excludes human-caused risk factors such as design errors and manufacturing defects. In other words, the general construction insurance covers accidental events, while human errors and negligence are not covered by the insurance; this point needs to be given special attention. The party that takes out a general construction insurance policy is usually the owner (the project developer), or it may be stipulated in the construction contract that the general contractor shall undertake the insurance. The insurance period runs from the date of official commencement of the project until the date of successful completion and handover to the owner ； If the project timeline is extended, it is necessary to apply to the insurance company in advance for an extension of the coverage period. All-risk insurance for installation projects, abbreviated as “All-Risk Insurance for Installation Works,” is similar to all-risk insurance for construction projects; it is a specialized insurance product designed for “equipment installation projects” such as industrial plant equipment, power lines, and HVAC systems. It provides coverage against damage to the equipment or losses resulting from failed installations that occur due to accidents during transportation, lifting, and commissioning processes. The all-risks installation insurance covers specific risks associated with installation, such as errors in equipment lifting, debugging issues, and pipeline ruptures. It provides coverage during both the individual equipment debugging phase and the combined system testing phase, as these are the stages with the highest levels of risk. The insurance can be taken out by the equipment installation company, or by the owner on a consolidated basis ； The insurance period runs from the date the equipment arrives at the construction site until the date it is installed, tested successfully, and handed over to the owner. Third-party liability insurance, commonly referred to as third-party insurance, is a type of additional insurance. Similar to vehicle insurance, it provides coverage for any personal injuries or property damage caused to third parties outside the construction site – such as passersby, local residents, or the property of other organizations – as a result of accidents that occur during construction. It covers the financial compensation responsibilities that the policyholder is legally required to assume in such cases. The third-party insurance covers only losses to third parties outside the project boundaries; it does not cover damages to the project itself or to construction workers (such losses are covered by work-related injury insurance and general construction insurance) ； In most cases, it is purchased as an additional coverage to the general construction insurance ； In addition to compensating third-party losses, it also covers legal expenses such as litigation costs and attorney fees arising from the accident. The policyholder is the same as that for the general construction insurance, with the owner or the general contractor purchasing the insurance. The insurance period is the same as that for general construction insurance, covering the time from the start of construction to the completion of acceptance testing. If there are further tasks to be carried out after the project is handed over (such as repairs during the warranty period), the insurance period must be extended separately. Engineering quality insurance, also known as “IDI (Inherent Defects Insurance),” is a **voluntary insurance scheme that is being introduced gradually. It provides coverage for structural damage to newly built residences or major public buildings that occurs after they are delivered, as a result of quality defects in the surveying, design, construction, supervision, and other aspects of project execution. Issues such as cracked walls and foundation settlement can give rise to claims, with the insurance company responsible for carrying out repairs or providing compensation. Project quality insurance fills the gap resulting from the contractor’s disappearance, inadequate maintenance, or failure to fulfill its warranty obligations during the warranty period; it covers the quality responsibilities of the survey, design, construction, and supervision agencies. If quality issues arise due to the faults of these agencies, the insurance company can make payments and then seek reimbursement from the responsible party ； Currently, mandatory insurance has been gradually implemented for new residential construction projects across the country, while public buildings can opt to purchase insurance voluntarily. The insurance shall be purchased by the construction entity prior to the start of the project, with the premium being included in the total cost of the project. The insurance period can be divided into two phases: ① the warranty period, which is usually 2 years ； ②The insurance period for the main structure (covering structural defects in foundations, beams, columns, etc.) starts from the date when the project is approved upon completion. Work safety liability insurance is a **mandatory commercial insurance product designed specifically for high-risk industries such as mining, handling of hazardous chemicals, and construction. Its core function is to provide compensation for casualties among employees, losses to third parties, and costs associated with accident handling in the event of production safety accidents; it also requires insurance companies to offer accident prevention services, thereby creating a closed-loop management system that combines risk prevention with post-incident compensation. In accordance with the Implementing Measures for Work Safety Liability Insurance (revised in 2025), construction enterprises are required to purchase such insurance; failure to do so will result in administrative penalties, and they will not be allowed to participate in activities such as work safety standardization assessments. The party taking out the insurance is usually the construction contractor (the general contractor or a subcontractor), and it must cover all employees (including temporary workers and interns), without any discrimination based on the type of employment relationship. The insurance period runs from the date of project commencement until successful completion and acceptance, in sync with the general construction insurance ； In summary, work-related injury insurance and safety production liability insurance are the fundamental forms of coverage that are mandatory; whereas all-risks construction insurance plus third-party liability insurance are supplementary commercial insurances that cover the three key risks related to personnel, the project itself, and third parties, thereby helping to reduce the risk of loss of control over the project ； All-risk insurance for installation projects is primarily aimed at equipment installation projects ； Project quality insurance is a new type of insurance designed specifically for residential and commercial buildings outside their warranty period; it helps to mitigate or reduce the quality risks associated with construction firms failing to fulfill their warranty obligations after the project is completed.