What is JCT 6.5.1 Non-Negligent Liability?

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What is JCT 6.5.1 Non-Negligent Liability? 

Developers or individuals will bring in Contractors to carry out works on construction projects, from new build properties on their land, to renovation works to their existing properties. Checks are almost always made to ensure that the Contractor carries a minimum level of Public Liability, but just how far does this cover go and how can you still be exposed?

A 1958 legal precedent established that an Employer who hires a Contractor has a responsibility to pay compensation for any damage inflicted on third parties, even where such damage did not occur as a result of negligence. 

This means that any damage to neighbouring properties for items such as subsidence, landslip, ground heave or similar (as a result of work at your location) could result in claims against you and negligence does not need to be proven. If either you or your contractor only carries Public Liability, then this will not be sufficient to cover against claims of this nature. It is advised that a non-negligence liability policy is taken out in joint names between the Employer and the Contractor to cover against such exposures. 

A specific non-negligence policy is available which is usually arranged on a joint names basis between the Contractor and Employer, protecting both parties’ actions, as well as their interests.

However, various construction methods work on listed buildings and geographic locations have restricted what cover is available in the market in recent times - sourcing the correct level of cover can be difficult. 

With our strategic partners and in-house expertise, we are confident that we can assist with all of your JCT 6.5.1 requirements.

Contact us today for expert advice from our dedicated Construction team:

http://www.reichinsurance.co.uk/our-services/construction/ 

 

Tags: Construction | Insurance | Public Liability | JCT | Contractors | Developers | Renovation | Listed Buildings