Why might I need insurance for a JCT clause?
JCTstands for Joint Contracts Tribunal. JCT issues various standard forms of contract and certain clauses will require different insurances to be put in place, failure to take out the insurance could render either party in breach of contract. If you are refurbishing or extending your building, or building a new one, you’ll need to ensure that the main contractor holds ‘Contractor All Risks’ (JCT 5.4A) and ‘Contractor All Risks and existing structures’ (JCT 5.4B) policies for the project. They will also require Public Liability insurance (JCT 5.3). Along with other professionals involved – for example architects and surveyors – professional indemnity cover will also be appropriate. Bruce Burke & co can, of course, provide these covers. But you should also consider carefully whether you need separate, additional cover for JCT 21.2.1 of the JCT 1998 Standard Building Contract and JCT 6.5.1 of the JCT 2005 Standard Building Contract (sometimes referred to as the JCT minor works contract.) The insurance requirements under these two clauses are actually the same and deal with situations where negligence cannot be proven. These are not the same as public liability insurance and protect you against entirely separate risks.
What is the Joint Contracts Tribunal (JCT)?
Established in 1931, the JCT is now made up of 7 membership organisations:
- British Property Federation
- Contractors Legal Grp Limited
- Local Government Association
- National Specialist Contractors Council
- Royal Institute of British Architects
- Royal Institution of Chartered Surveyors
- Scottish Building Contract Committee Limited
Through consultation, experience and development, they produce standard forms of contract for the construction industry. They are the most popular and most commonly used contracts used in the UK construction Industry. These contracts typically specify insurance requirements. You won’t be able to legally undertake the work without having the required insurance cover in place.
Who is JCT Clause Insurance for?
JCT 21.2.1 and JCT 6.5.1 insurance cover is designed to protect property owners, developers, project managers or building contractors from claims arising from injury or damage to property due to collapse, subsidence, heave, vibrations, weakening or removal of support or lowering of groundwater attributable to the carrying out of the works but not due to any negligence of the contractor or design.
But I already have Public Liability cover, doesn’t that do the same thing?
No. Public Liability cover would protect you against any claim of negligence, but as established, that isn’t the issue here. Where negligence can’t be proven, the insurers will not payout against a public liability cover. Meanwhile, the costs could be significant and will need to be met. Even where they are met by the owner’s building policy, the insurer would look to make recovery against someone. Inevitably, this will be you! At a minimum, you would be looking at a large legal bill to defend yourself. In the worse case scenario, you may end up paying the repair costs as well as their legal costs. Sounds complicated? At Bruce Burke & Co Insurance Brokers we have years of experience placing JCT clause insurance. We can offer you professional, impartial advice on what cover you may need.
Why should I buy JCT Clause Insurance from Bruce Burke & Co.?
Bruce Burke and Co Insurance Brokers is a specialist insurance broker in the Construction industry. We have many clients from sole traders through to large corporates who place their specialist construction industry insurance requirements through us. Over the years, we have developed significant expertise with JCT Clause insurance in all its forms and have an extensive panel of insurers who we work with.