- Project plans
- Project activities
- Legislation and standards
- Industry context
- Specialist wikis
Last edited 05 Oct 2020
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.
 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.
- Insurance terminology.
- Integrated project insurance.
- Latent defects insurance.
- Legal indemnity insurance.
- Professional Indemnity Insurance.
- Public liability insurance.
- Residual value insurance.
 External references
Featured articles and news
CIAT reporting from the Competition and Markets Authority.
Making sustainable construction number one priority.
Interview with ECA CEO.
Many provisions came into force on June 28, 2022.
With room to expand.
Refurbishment, Energy Efficiency, Indoor air and process.
Why building acoustic considerations must be non-negotiable.
Aluminium Composite Panels (ACP) is one example.
Inventors and innovators at ICE.
Life, death and art at the Stuart court. Book review.
Real estate, place adaptation and innovation.
Review and comment on the revised draft before July 11.
Write about something you know, help us build and grow !
A blended event and triumphant return.
Mark Reynolds succeeds Andy Mitchell as Co-Chair of CLC
Designing Buildings is 10 years old.
From alteration to deconstruction on DB.
Understanding temperature in buildings on DB.
A call for home energy management to be modernised.
How many different types can you think of ?
Looking back and fourth to what still needs to be done.
Pioneering Indian environmental design Architect.
The greenest building is the one already built.
History of Temple Meads rewritten.
Currently standing at just 1%.
Find out more with BSRIA.
Changes come into force for F,L,O and S.