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Last edited 01 Oct 2020
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.
- Employers’ liability insurance – which protects against Employers' liability for injury of employees arising in connection with their employment (clauses 6.1 – 6.4 JCT 2016).
- Insurance against non-negligent withdrawal of support – which covers potential structural damage to neighbouring property caused by the withdrawal of support (clause 6.5).
- Insurance of the works and of existing structures – which covers physical damage to the works, site materials and existing structures (if there are any) (clauses 6.7 to 6.11 and Schedule 3 JCT 2016) – discussed in detail below.
- Public liability insurance – which covers liability arising from death or personal injury to, or damage to property belonging to, third parties (clauses 6.1 – 6.4 JCT 2016).
- Professional indemnity insurance – which insures against liability arising from professional negligence. Architects, engineers and other professional consultants that owe a design responsibility to the Employer are usually required to maintain such insurance (clauses 6.15 and 6.16 JCT 2016).
 Find out more
 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.
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