JCT insurance is a specialised policy that is designed to protect the construction industry including contractors and employers. Construction projects can be lengthy and complex, involving multiple projects, companies, and materials. With this complexity comes uncertainty and risk, which is why JCT insurance is essential for all involved. It covers everything employers, public, and professional liability to plant and equipment to contract works and DSU.
This guide to JCT insurance covers everything you need to know about this specialist insurance policy, including what it covers, what it means, and where to buy your JCT coverage.
What is JCT Insurance?
JCT insurance is a type of insurance specifically designed for the construction industry. It isn’t a single insurance in itself, but rather a collection of policies that can be arranged where a JCT contract is in place.
A JCT contract is issued by the Joint Contracts Tribunal (JCT) and is designed to clarify all aspects of the construction project, including roles and responsibilities. This helps to avoid disputes or legal issues if something during the project goes wrong. As part of the contract, you are required or recommended to hold various insurance policies, known as JCT insurance. It should be a prominent part of any Contractors Check List before any work begins.
What does a JCT stand for?
JCT stands for Joint Contracts Tribunal, which is an organisation that produces standard forms of contract documentation for construction projects. These contracts establish the legal relationship between the employer and the contractor, outlining their respective roles, responsibilities, and obligations.
The JCT contracts serve as a foundation for the insurance provisions in the project. They typically require the contractor to take out specific types of insurance, and this is where JCT insurance comes into play.
Who Are The JCT?
The organisation that provides these contract documents and forms for use in the construction industry in the UK are the JCT (Joint Contracts Tribunal). They also provide guidance and advice for all parties involved in the construction process, including the requirements of JCT insurance for the contract.
What does JCT insurance cover?
The main purpose of JCT insurance is to safeguard the interests of the employer, the contractor, and other parties involved. This involves covering different aspects of construction work, which can include:
Public Liability Insurance
Public liability insurance, also called JCT 21.2.1, covers any damages and/or legal expenses that may happen due to property damage or injury to third parties during the project.
Employer’s Liability
Employer’s liability insurance provides protection and legal cover for the employer in the event of injury or illness claims made by employees.
Contract Works
Contract works, otherwise called “All Risks” cover or JCT Option C, protect against fire, theft, vandalism, and accidental damage to all materials and equipment involved in the project.
Contractor’s Plant and Equipment
Sometimes, contract works insurance does not include cover for machinery and plant equipment used in construction. So a separate policy, known as Contractors Plant insurance is needed to cover machinery and plant equipment.
Professional Indemnity
Professional indemnity protects companies against claims that may arise from errors, omissions, or negligence during the project. This includes issues with contractors and quality of work.
Delay in Start-Up (DSU)
DUS insurance protects against any financial losses that occur because of a delay in the project’s completion.
Non-Negligent Liability
Also known as “JCT 6.5.1,” Non-negligent liability insurance covers the employer against any damage to neighbouring properties that happen during construction.
What is JCT 21.2 1 cover?
JCT 21.2.1 is a type of insurance required by the JCT contracts. It is also known as “Public Liability Insurance, which covers employers against injury to third parties and damage to their property caused by construction activities. It is important for the construction industry as accidents happen and can be very costly if claims are made.
What is JCT Option C insurance?
Otherwise known as Contract Works insurance, JCT Option C covers loss and/or damage to any construction materials and supplies during the construction phase. It can be offered as individual insurance for a specific contract, part of a Contractor’s All Risk policy, or as part of a Contractors’ Combined Insurance.
The responsibility for arranging Option C insurance usually sits with the employer or contractor, depending on the agreement made in the contract. If the contractor is responsible for arranging the insurance, they will add the premium cost to their project price.
Where to arrange JCT cover?
When it comes to purchasing JCT insurance, you need to work with experienced insurance who are specialists in your industry. There are lots of insurance brokers that offer construction-related policies, but not every company has the experience or understanding of the complexity of the industry.
You should also work closely with your insurer and make sure you’re up to speed with all the JCT contract’s insurance requirements. That way, you’ll have all your bases covered, and everyone involved will be protected throughout the whole project.
Getting The Right JCT Insurance Cover
At Construction Insure we work with you to make sure that you are completely covered. We have a wide range of experience and are specialists in construction insurance. So we know the right questions to ask you to make sure you get the JCT Insurance cover you need.
As an established insurance broker, with a long-standing presence in the construction industry, we have the expertise to offer you precise guidance, ensuring comprehensive protection against any potential claims that may arise during your project. Speak to our team at 0203 958 6868 for a FREE no-obligation quote. We will use our panel of insurers to get you the best quote on the market to get your construction projects up and running.