Specified perils in construction contracts
- The works.
- On-site materials or goods.
- Off-site materials or goods.
- Existing structures and their contents.
Specified perils tend to be significant events that would cause very significant damage, such as fire, explosions, earthquakes, flooding and so on. All-risks insurance will tend to cover a broader range of risks, albeit it may not cover every possible risk.
Policies may be taken out by the contractor or by the client depending on the form of contract and the options selected, and may be for all risks, specified perils, or a combination for different parts of the cover. For example existing structures might be insured against specified perils whilst the construction works might be insured against all risks.
Insurance will generally be in the form of a ‘joint names policy’ in the names of the contractor and the client. This gives both parties their own rights to claim against the insurer. Other parties, such as funders may also be added as a joint name.
Joint-names insurance will generally prevent claims against the co-insured party for an insured loss. Whether or not claims can be made by one party against the other for uninsured losses where one of the parties is at fault will depend on whether the contract permits this or not.
NB See also relevant events.
 Related articles on Designing Buildings Wiki
- 3D animation for insurance risk analysis.
- Building Users' Insurance Against Latent Defects.
- Contract works insurance.
- Contractors' all-risk insurance.
- Design liability.
- Directors and officers insurance.
- Excepted risk.
- Flood insurance.
- Joint names policy.
- Latent defects insurance.
- Legal indemnities.
- Off-site materials.
- Professional Indemnity Insurance.
- Residual value insurance.
Featured articles and news
What will the General Data Protection Regulations (GDPR) mean for you when they come into force in May?
Business Secretary chairs a new taskforce to monitor and advise on mitigating the impacts of Carillion’s liquidation.
Sir John Armitt is appointed the new chair of the National Infrastructure Commission.
High quality and high density homes - is it what we need or is it storing up trouble?
Government announces its intention to strengthen planning rules to protect music venues and neighbours.
National Audit Office reports that there is little evidence that PFI offers better value than other forms of contracting.
What is liquidation and how does it apply to contractors in the construction industry?
Scrutiny is placed on Carillion's controversial 2013 decision to extend subcontractor payment terms to 120 days.
RSHP unveil their involvement in a boundary crossing which will provide a new entry point into Hong Kong.
With PFI currently under the spotlight due to Carillion, this introductory article explains what they are.
Estimates suggest that up to 30,000 small firms could be at risk of non-payment as a result of Carillion's collapse.