Last edited 27 Oct 2020

JCT 98 Contract Insurances

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[edit] JCT 98

[edit] Relevant Provisions in Main Contract

[edit] Clause 20 - Injury to persons and property and indemnity to employer

[edit] Clause 21 - Insurance against injury to persons and property

[edit] Clause 22 - Insurance of the works

[edit] Clause 22A - Erection of new buildings - all risks insurance of the works by the contractor



Failure of contractor to take out policy

Payment of insurance proceeds

Partial completion

Site materials

  • all unfixed and goods delivered to, placed on, or adjacent to the works and intended for incorporation in them

[edit] Clause 22B - Erection of new buildings - all risks insurance of the works by the employer



  • as above

Failure of employer to take out policy

  • contractor can take out his own policy and increase the contract sum by the amount of premiums he has to pay.

Payment of insurance proceeds

[edit] Clause 22C - Insurance of existing structures - insurance of works in or extensions to existing structures

[edit] Clause 22D - Insurance for employer's loss of liquidated damages

[edit] Clause 22FC - Joint Fire Code compliance

[edit] Sub-Contractors


[edit] General

[edit] Contract Works Insurance

  • similar to JCT 98

[edit] Professional Indemnity Insurance: Design and Construct


[edit] Damage to Works

[edit] Cover

  • usually arranged on an annual basis by a contractor, thus covering all contracts
  • possible for cover to be arrange on a single contract basis but more expensive

[edit] Extensions to the policy


  • anywhere within the territorial limits
  • excludes sea and air transit (heavier risk)
  • excludes motor vehicles (insures under motor vehicle policy)
  • excludes employees tools (too many small claims)


Architects', Surveyors' and Consulting Engineers' fees

  • incurred in the reinstatement of the property insured consequent on its loss or damage

Removal of debris

Off-site storage

[edit] Exceptions to the policy


  • means of encouraging the contractor to take care and of
  • eliminating small claims

Post-completion risks

Existing Structure

Other exceptions

[edit] General Conditions

  • reasonable precautions
  • disclosure of material facts
  • adjustment of the premium
  • contribution - if there is another policy, the policy will not pay until the first policy has been exhausted
  • cancellation - insurer's, but not the insured, have the right to cancel

[edit] Claims Conditions

  • notify insurer within three months of any events that may give rise to a claim
  • refrain from repairs until the insurer has had time to inspect
  • notify and assist the police in case of theft, loss or wilful damage to property

[edit] CLAIMS

  • dealt with by loss adjusters


[edit] Employers and Public

[edit] Clause 21.2.1


[edit] General

[edit] The Insured

[edit] What the policy covers

Inherent defects

Policy exceptions

  • damage arising from fire and the perils normally insurable under a fire policy
  • damage arising from alterations, modifications or additions during the period of insurance
  • damage caused by or contributed to by inadequate maintenance
  • damage exceeded from any process for which the building was not designed
  • faulty or inadequate weatherproofing unless requested at the outset

[edit] Period of Insurance

Maintenance Period

[edit] Sum Insured

[edit] Premium affected by:

Designing Buildings Anywhere

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