Contractors Liability Insurance in Iran
For construction, installation, industrial and service contracting companies and their subcontractors.
Persian twin page (authoritative): /liability/commercial/contractors
Short answer
Contractors liability insurance covers third-party bodily injury, property damage and contractual liabilities arising from construction, installation and service projects executed by a contracting company. It responds where the contractor or its subcontractors cause damage to neighbors, passers-by, the employer's property or other third parties during the execution period.
The final premium is issued upon official quotation — no premium figures are published on this site.
Who needs this policy?
- Construction and civil-engineering contracting companies
- Installation, electrical and mechanical contractors
- Industrial and service contractors working on client sites
- Main contractors scheduling their subcontractors under the same policy
- Development companies executing their own projects with hired executors
What is covered?
| Coverage | Description |
|---|---|
| Third-party bodily injury | Diyeh and medical costs for injury to passers-by, neighbors and other third parties caused by the contractor's site operations. |
| Damage to neighboring properties | Property damage to adjacent buildings, structures and installations caused by excavation, shoring, demolition or heavy lifting operations. |
| Damage to the employer's existing property | Liability for damage to property belonging to the project employer that exists at the site, distinct from the works under execution. |
| Subcontractors' acts | Liability arising from operations of declared subcontractors, for which the main contractor answers toward the damaged party. |
| Legal defense costs | Attorney fees and procedural costs in civil proceedings brought by third parties for insured site damage. |
| Contractual liability extensions | Liability assumed by contract, to the extent declared in the policy schedule and consistent with the insurer's general conditions. |
What is not covered? (Exclusions)
- Damage to the contractor's own works, materials and equipment under execution
- Fines, penalties and contractual liquidated damages
- Deliberate violation of safety regulations and site safety plans
- Projects, sites or periods not declared in the policy schedule
- Liability of the contractor toward its own direct employees, covered under employers liability insurance
Issuance conditions
- Declaration of the project, scope, location and execution period at issuance
- Compliance with the safety plan and technical specifications of the contract
- Limit of liability not lower than the contractually required minimum, where a contract applies
Required documents
- Contract or tender award letter with the liability clause
- Project scope, location and execution period
- Company registration documents for corporate contractors
- List of subcontractors, where their acts are to be covered
How to buy — step by step
Quotation and consultation
Submit the quote request with the project or company profile; the advisor proposes a limit matching the contract requirement.
Documents and official proforma
After the contract details are received, an official proforma invoice is issued on Bimeh Iran tariffs.
Premium payment
Pay through the banking gateway or a bank receipt; cover starts on the confirmed issuance date, aligned with site possession.
Policy delivery
The printed and electronic policy, with the project schedule, is delivered in time for the employer's site handover checklist.
How to claim — step by step
Secure the site
Stop the hazardous operation and secure the scene to prevent further damage, without destroying evidence.
Immediate notification
Notify the agency within five working days of the incident, per the policy's notification condition.
Claim form and documents
Submit the claim form, site photographs, witness statements, safety records and any official inspection report.
Liability assessment
The adjuster assesses liability against the contract and Iranian civil liability rules, including the contractor's supervision duties.
Agreement and payment
Compensation to the third party is agreed or court-awarded and paid subject to the policy deductible.
File closure
The settlement record closes the file; repeated safety failures are recorded and affect future premium terms.
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 — Contractors Liability Insurance
Legal sources
Civil Liability Act of Iran (1960) — Articles 1 and 2 — fault-based civil liability
Civil Code of Iran — Articles 328 to 335 — liability of possessors
Labor Law of Iran — Article 91 — employer's liability for workers
Iranian Insurance Act (1936) — Article 30 — five-day claim notification
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 Contractors 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.