Insurance

Question 1

What types of insurance are needed under JCT ?

Answer 1

• indemnities - injury to persons and property
• insurance - injury to persons and property
• insurance - liability of the employer (not included in Minor Works)
• Insurance of the works - New works and existing structures
• Remedies if a party fails to insure
• Professional indemnity insurance

Question 2

Which clauses deal with insurance?

Answer 2

SBC - clause 6 and schedule 3

MW - clause 5

Question 3

When the architect receives the contractor’s insurance documents they should:

Answer 3

• make sure they are checked and commented on
• either by themselves or an expert
• OR ensure the employer has an expert check them
• NEVER pass them on without comment
• it is the architect’s duty to make sure the insurance is appropriate and the client has been properly advised

Question 4

Who is liable if a person is injured due to the works?

Answer 4

The contractor - unless its the employer’s fault in which case the EXTENT of the employer’s fault will be taken into account. SBC cl 6.1

Question 5

Who is liable for property damage?

Answer 5

The contractor is liable to the extent that it was their fault through negligence etc SBC cl 6.2

Question 6

Who is liable to property damage where careful design has occurred?

Answer 6

Employer is liable if contractor has not been negligent but the contractor is expected to take out an insurance (value specified in the particulars) to cover the employers risk on this.

Question 7

cl 6.6 states contractor has not liability for damage or injury from:

Answer 7

• ionizing radiation
• contamination by radioactivity or nuclear waste
• pressure waves by aircraft or other sonic devices
• acts of terror not covered by terrorism insurance

These are “expected risks” and the sole responsibility of the employer.