Insurance requirements on site are often dictated by your Joint Contracts Tribunal (JCT) contract. Where some will understand the needs of certain areas, there are several key points that are insured incorrectly or missed altogether. We work closely with you, your funders and interested parties to ensure the cover is put on the correct basis, ensuring that you meet the insurance requirements stipulated in your contract.
Understanding the contract requirements is fundamental when arranging the covers. In a standard JCT Contract, clause 6.7 will determine who is responsible for the insurances on site. We often review contracts before working with insurers, to ensure that we are obtain the covers on the right basis from the outset.
There are a number of areas of cover that we can look to include in joint names on a site-specific insurance programme. We have listed some of these below and detailed what they cover and how they can be arranged.
Contractors All Risk (CAR)
Contractors All Risk provides cover for the material damage and losses to the new works on-site or in transit to and from the site. This is a joint named policy to be taken out by either the contractor or the developer (employer) as stated in the JCT contract. Having the policy on a standalone basis allows the cover to be extended to include delay costs following damage or material loss, as well as existing structures (where required) on the basis in accordance with the requirements under JCT. Even if these extensions are not required, individual site-specific policies are often more suitable where a company has only been established for the purpose of the build, or the project is of a significant size where premiums can be more accurate with some key extensions.
Liabilities on Site
It is often a requirement for the contractor to take out the liabilities on site. However, for larger projects, that have a large number of contractors on-site at any one time, a claim can become riddled with grey areas and concerns. A developer (employer) can take out a liability policy to cover all parties, which helps to mitigate these issues. Although these costs can be expensive, it can often be rescinded from the insurance costs which contractors charge as part of their tender process.
Often known as JCT 6.5.1 cover due to its clause number in the JCT contract, this policy protects the developer’s (employer’s) strict liability to surrounding properties as a result of the work on site. Whilst some expect this to be covered automatically within the other policies, it is generally only covered for a few weeks and a specific policy is required at each location, due to the underwriting requirements around the policy.
Contractors Pollution Liability
Whilst this is not usually a requirement under the JCT contract, it can be a requirement by the local authority. However, we are witnessing an increasing number of claims, whereby the contractor and the developer (employer) are both jointly facing actions brought against them following pollution from a construction site. Although a JCT contract may put the responsibility on the contractor for some of these eventualities, a standard liability policy is unlikely to cover these.
Often, there are contractual requirements for certain Bonds including Retention Bonds, Performance Bonds, Payment Bonds and Road & Sewer Bonds. These vary between parties as to who is responsible for arranging and we have a bespoke team who can work with you to arrange each class of Bond accordingly.