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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.
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 Related articles on Designing Buildings Wiki
- Contractors’ all-risk insurance.
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- Employer's liability insurance.
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- Latent defects insurance.
- Making sure your builder has appropriate insurance.
- Professional Indemnity Insurance.
- Public liability insurance.
- Risk register.
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