Construction Operations Liability Insurance in Iran
For owners and builders of buildings under construction, qualified executors, excavation contractors and site supervisors.
Persian twin page (authoritative): /liability/commercial/construction-operations
Short answer
Construction operations liability insurance in Iran compensates third parties for injury and property damage caused by building works such as excavation collapse, falling materials and damage to adjacent properties, and covers the owner's and builder's statutory warranty liability under Article 33 of the Engineering System Act, up to the policy limit.
The final premium is issued upon official quotation — no premium figures are published on this site.
Who needs this policy?
- Owners and builders of residential and commercial buildings under construction
- Qualified executors holding an Engineering System permit
- Construction companies and housing cooperatives
- Excavation and foundation contractors
- The site supervisor and the technical manager of the project
What is covered?
| Coverage | Description |
|---|---|
| Excavation collapse and damage to adjacent properties | Compensation for damage to the structure and installations of neighboring properties caused by excavation collapse, vibration and ground settlement. |
| Owner and builder warranty liability | Cover of the consequences of non-observance of the national building regulations in the components defined by Article 33 of the Engineering System Act, within the statutory periods. |
| Third-party bodily injury on site | Diyeh and medical costs of passers-by and third parties injured by falling materials or collapse during construction. |
| Damage to public utilities | Compensation for damage to cables, pipelines and nearby oil and gas lines during excavation and execution. |
| Legal defense costs | Court costs in complaints by neighboring owners and in proceedings involving the municipality and the Engineering System Organization. |
| Construction and post-delivery period | Extension of cover from excavation to the end of the statutory warranty period, according to the policyholder's choice and the policy conditions. |
What is not covered? (Exclusions)
- Construction without a permit or contrary to the approved drawings
- The design consultant's and supervisor's liability for defective drawings, unless expressly scheduled in the policy
- Occupation or use of the building before the completion certificate is issued
- Settlement caused by neighboring excavations outside the policyholder's control
- Natural events such as earthquakes, unless a special endorsement is agreed
- Damage to the structure under construction itself, which belongs to contractors all-risk insurance
Issuance conditions
- A valid building permit and approved drawings
- Use of a qualified executor with professional supervision under Article 33
- Notification of the excavation stage and receipt of safety advice before drilling starts
- No undisclosed claims from previous policy periods
Required documents
- Building permit and approved drawings
- Construction management contract and the executor's technical-professional ID
- Supervisor's reports and stage approvals
- Identity documents of the owner or construction company
- Engineering System Organization inspection report, where available
How to buy — step by step
Quotation and project review
Submit the quote request; the permit, drawings, excavation depth and project duration are reviewed, and a limit is proposed.
Documents and official proforma
After the permit and supervision documents are received, an official proforma invoice is issued on the approved Bimeh Iran tariffs.
Premium payment
Pay through the banking gateway or a bank receipt; cover starts the moment issuance is confirmed, ideally before excavation begins.
Policy delivery
The printed and electronic policy with its general conditions is delivered within one working day.
How to claim — step by step
Immediate notification
Report the incident to the agency as soon as you become aware of it; the policy sets a maximum notification period of five working days.
Claim form
Complete and sign the claim form describing the incident, the damaged property and the construction stage.
Case documents
Submit the permit, approved drawings, supervision reports and, where prepared, the pre-excavation status report of adjacent properties.
Adjuster assessment
The claims adjuster examines the cause of the collapse or damage, the observance of the approved drawings and the fault of the parties.
Agreement and payment
Once liability and the amount are established, compensation is paid subject to the policy deductible.
Claim notification deadlines and assessment details follow the policy general conditions and the Iranian Insurance Act (Article 30 practice: notification within five working days).
FAQs — Construction Operations Liability Insurance
Legal sources
Engineering System Act of Iran — Adopted 1995 — Article 33 (builder's and supervisor's statutory liability)
Civil Code of Iran — Articles 328 to 335 — guaranty and damage caused by buildings
Civil Liability Act of Iran (1960) — Articles 1 to 11 — fault-based civil liability
Iranian statutes are authoritative in Persian; English titles above are orientation references.
Reviewed by the Iran Liability Insurance content team
Reviewed by the licensed team of Agency No. 20616 of Bimeh Iran, specialized exclusively in liability insurance.
Legal review: licensed team of Agency No. 20616, Bimeh Iran — Last reviewed: 24 October 2026
Get Construction Operations Liability Insurance through the official Bimeh Iran agency
The online quote form is in Persian. English-speaking visitors may submit inquiries by email in English, and a consultant will respond in English. The quotation is issued on current Bimeh Iran tariffs after the limit of liability is agreed.