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JCT Insurable Contract Clauses, Explained

11 December 2020

The JCT contract can be confussing and many people sign these without giving thought to the relevant insurable clauses and who is actually responsible for what.

Below is a quick overview of the JCT clauses found in the Insurance Section.

6.5.1 - Non-Negligence Indemnity (Previously 21.2.1)

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 - 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 - 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 - Option C

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 - Option C

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

For further assistance and to explain these in greater detail please get in touch with one of our specialist team on 02476 017 646

 

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