If you're a building contractor or property developer carrying out a new build, or building outside a property's original structure, such as a double storey extension, loft conversion or basement conversion, contract works cover is essential. Without it, you're heavily exposed.
What you Need to Declare
To arrange contract works insurance, you'll need to provide:
Your turnover- The length of the contract
- The maximum value of any one contract, or the total project value if it's a one-off
Protecting Yourself as a Developer
Some developers arrange contingent cover as an extra layer of protection. This usually works in one of two ways:
- Both parties are named on the same contract works policy, known as a JCT 5.4
- The developer takes out their own contract works policy covering the contract
This means that if the contractor’s policy fails, for example due to an endorsement or insufficient cover, there’s still insurance in place through the contingent policy.
Alternatively, the developer can be added as an Indemnity to Principal on the contractor’s policy. If you go this route, it’s worth checking the contractor’s sums insured are adequate, and that there are no endorsements affecting high-risk activities such as heat works, ground works, piling, underpinning or demolition.
" Comparing like with like plus some lower excesses you have managed to save me in excess of £1500 or approximately 15% on my previous insurer. "