- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 02 Feb 2018
Non-negligent liability insurance
Construction is an inherently dangerous process with many hazards, in particular when working close to existing buildings or other structures. In such situations, there is the potential for that property to suffer damage, even if care is exercised.
As a result of the potential for these sorts of losses to occur on construction projects, Joint Contracts Tribunal (JCT) contract forms provide for non-negligent liability insurance to be taken out, and other forms of contract may have similar provisions, either as part of the standard form or as an amendment.
Such provisions require that the contractor takes out a policy that protects the developer in respect of any expense, liability, loss, claim or proceedings incurred as a result of damage to property from the works being undertaken due to; collapse, subsidence, heave, vibration, weakening or removal of support and lowering of ground water. It is also possible to include cover from the hazards of flood, explosion, backing up of drains and bodily injury to third parties caused by an insured peril.
This sort of cover is not always be required as the kind of activities which give rise to such losses may not be present on all projects. Consultants will usually be able to recommend whether or not the cover is required.
- Piling and foundation excavations
- De-watering of the ground
- Demolition close to an existing property.
- Shoring of walls
- Works that may affect the load-bearing capacity of a structure.
- Works on listed buildings or buildings in a poor condition.
Typical exclusions from non-negligent cover might include:
- Damage caused by negligence, omission or by default of the contractor or subcontractor.
- Damage which is due to error or omissions during the design process.
- Damage which could reasonably have been foreseen as inevitable.
- Penalties incurred under contract and damages for breach of contract.
The Royal Institute for Chartered Surveyors (RICS) have produced a guidance note which provides further information on non-negligent liability insurance, including details of Gold v Patman & Fotheringham (1958), the landmark case in this situation.
 Find out more
 Related articles on Designing Buildings Wiki.
- 3D animation for insurance risk analysis.
- Building Users' Insurance Against Latent Defects.
- Contractors' all-risk insurance.
- Contract works insurance.
- Directors and officers insurance.
- Employer's liability insurance.
- Flood insurance.
- Integrated project insurance.
- Latent defects insurance.
- Legal indemnity insurance.
- Professional Indemnity Insurance.
- Public liability insurance.
- Residual value insurance.
 External references
Featured articles and news
The London Build Expo is hosting a Diversity in Construction panel and networking session on October 24.
Analysis can help develop a specification, but must not lead to inappropriate specifications being accepted.
Dos and don'ts for creating a smart home.
New ICE publication recommends pay-as-you-go tax to fund roads and other financing options.
BSRIA launches a White Paper on wearable technology and wellbeing in buildings.
Have the pressures of the market shredded the core values of professionalism?
Lead times are a measure of the amount of time that elapses between initiating and completing a construction process.
Government releases first tranche of funding for removal of unsafe high-rise cladding.
How to ensure UK transport infrastructure copes with severe winter weather.