- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 09 Mar 2018
JCT Clause 6.5.1 Insurance
The contractor will probably already be required to hold public liability insurance, as will an architect, along with professional indemnity insurance, but these policies only indemnify them if the damage has arisen from their own negligence. However, there may be damage with no clear negligence. For example, a neighbouring building may start subsiding a few weeks after demolition works have taken place correctly and professionally. The owner of the damaged building will likely be insured under their buildings policy, but those insurers will be keen to recovery costs from another party, i.e. the employer of the contractor.
The insurance is generally obtained by the contractor on behalf of the employer, with both names on the policy. This is a requirement of the contract, and the contractor will include it within their quoted price to carry out the works as a whole. The employer will typically be responsible for both the premium and any excess payable in the event of a claim.
The risks that are covered are named within the JCT Contract as:
 Related articles on Designing Buildings Wiki
- Contractors’ all-risk insurance.
- Damage caused by construction works.
- Employer's liability insurance.
- Joint names policy.
- Latent defects insurance.
- Making sure your builder has appropriate insurance.
- Professional Indemnity Insurance.
- Public liability insurance.
- Risk register.
- Run-off cover.
Featured articles and news
There are many ways of classifying types of building. Have a look at our range of building articles.
BSRIA have launched the 'major update' of the go-to design framework guide for building services.
How to get results with building life cycle assessment.
Government publishes a prospectus inviting proposals for new 'garden communities'.
The Morandi motorway bridge in Genoa collapses during rainstorm while undergoing maintenance works.
'Developed design' is a phrase coined by the RIBA for their 2013 Plan of Work. But what does it actually mean?
New green paper published aiming to rebalance the relationship between landlords and residents and tackle stigma.
RIBA calls for a comprehensive ban on combustible materials.
Lump sum contracts can be referred to as ‘fixed price’ contracts, although strictly this is not correct. Find out more here.
Ramboll offer guidance to civil engineers on how to make projects 'off-site ready'.
Government announces its Rough Sleeping Strategy, with further funding for social housing.