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Last edited 19 Feb 2018
JCT Clause 6.5.1 Insurance
In the Joint Contracts Tribunal (JCT), Clause 6.5.1 places a requirement on the contractor to organise insurance both for themselves and the client. The clause appears in the JCT Standard Building Contract or JCT Minor Works Contract.
A contractor will be required to hold public liability insurance, as will an architect and professional indemnity insurance, but these policies only indemnify them if the damage has arisen from their 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 make a recovery against 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 should be made of a requirement of the project by the employer, 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.
 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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