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JCT Insurable Clauses From The UK's Leading Provider

SB&G are able to offer tailored quotations for both JCT or NEC insurance clauses or equivalent. Both JCT and NEC insurance requirements stipulated in building contracts can and often should be insured on a standalone basis.

Call our specialist team now on 02476 017646

Main Insurable Contract Clauses Explained

6.5.1 Insurance - Non-Negligence Insurance Cover

JCT 6.5.1 Insurance covers damage to surrounding property that is not part of the Contract.

This policy covers the employer in respect of non-negligent damage or injury to any property when undertaking construction works including neighbouring properties. Cover includes claims for vibration, subsidence, collapse, weakening or removal of support. The policies are automatically issued in joint names of the contractor and employer.

6.7.3A - Insurance Option A

For projects involving new works - Contractor to arrange insurance in joint names of the contractor and employer on an 'All Risks' basis.

6.7.3B - Insurance Option B

For projects involving new works - Employer to arrange insurance in joint names of the employer and contractor on an 'All Risks' basis. 

6.7.3C - Insurance Option C 

Insurance Option C in the JCT Contract is for works consisting of the refurbishment of or modification or extension to existing structures - Employer to arrange insurance in joint names with the contractor on an 'All Risks' basis.

6.7.3C.1 - Insurance Option C.1

Damage to existing structures and their contents for specified perils - Employer to arrange insurance in joint names with the contractor.

What is Contract Specific Insurance Cover?

Both JCT and NEC have clause to stipulate the Insurance Cover that should be provided either by the Contractor or by the Employer. It will stipulate who should arrange it and on what basis (as per the above clauses), it will also set out who the Insured Parties should be and if any specific extensions should be included.

Why Have A Stand Alone Policy?

Many Contractors hold an annual Contract All Risk Insurance (CAR), however JCT contracts stipulate that the Contractor should arrange joint names policies on a Contract Specific Basis. Occasionally the annual policy is accepted but there are many benefits to arranging the Stand Alone Cover which include:

• One off fixed price rather than a variable annual policy.
• Ring fences this single project and will not influence claims and or renewal premiums of the annual policies.
• True Joint Names Policy rather than a noted interest in an Annual CAR.
• Specialist extension in cover can include Advance Loss of Profits. 

This list is not exhaustive but it demonstrates that a Contract Specific Policy is better suited than an annual CAR policy certainly on larger projects and those longer than 12 months.

Our Specialist Team

For more information about the range of JCT & NEC contract specific insurances please call our specialist team now on 02476 017646. Our highly experienced team can guide you through the labyrinth of options and help you to obtain the most competitive quotations from our wide panel of insurers.