Wherever possible, we recommend that a client’s construction contract is structured so that the client is responsible for arranging insurance protection. This is usually referred to as ’employer’, ‘owner’ or ‘principal’ controlled insurance. Under an employer-controlled programme, the employer organises insurance for construction in the joint names of him or herself, the financier, the contractor and sub-contractors working on the project.
Tender documents will exclude a requirement for insurance and identify the extent of the employer provided policies, as well as contractors’ continuing responsibilities.
A range of cover is available. Typically we will insure: all risks of loss or damage to works including an element of damage caused by defective design; all risks of loss or damage to unfixed materials; public and products liability; loss of income due to delays; non-negligent damage to adjoining and surrounding properties; and cover for latent defects in structural elements of the building.