Weather Insurance for Construction Projects

Adverse weather can affect a construction project in a multitude ways. Historically, contractors have carried these risks and have managed them through risk pricing and programme contingency. There are now specific weather insurance products available that can act as an alternative risk transfer tool for these eventualities.

Different risks can be created from variations in weather including:

Heat - high temperatures present a risk to worker welfare. Work may need to be suspended in the event of extreme heat which may impact on both productivity and the construction programme

Rainfall - excessive rainfall can cause disruption to site operations, impacting ground-works and evacuations. Alternatively, some materials may not be suitable for assembly while it is raining or snowing

Wind - cranes and other construction equipment have safe operating parameters including wind speed. High and/or gusting winds can interrupt lifting operations resulting in an impact on programme

Cold - certain materials, such as concrete, can only be used within specific temperature bands. Adverse low temperatures when using such products will cause these operations to halt

Wave height - excessive wave height may result in sea defences or other works, such as cofferdams, being overtopped. This may interrupt or delay the construction programme


weather insurance

JLT offers specific weather insurance products available that can act as an alternative risk transfer tool in order to mitigate against unexpected events.

Together with the client, we work to estimate what loss would be sustained beyond the anticipated period of delay. This way we make sure, most of the claim negotiation and quantification is undertaken before a policy is placed.

Our contractors are using weather products in a number of ways.

weather insurance

Before contract formation, during the bidding phase, contractors are utilising the product to improve their tenders by taking specific weather risks out of the negotiation with the owner. They achieve this by accepting the risk of weather delay and transferring the non-expected element via an insurance product.

This product is also proving useful to contractors once contract terms are fixed as it provides a risk pricing benchmark which allows retained risk to be calculated and potentially transferred to insurers where cost effective to do so.

Key Stats

Construction Key Services
Construction Key Services
Construction Key Services
Construction Key Services


  • JLT solutions are tailored based on client’s need to cover either a single project or provide protection across an annual programme of work
  • Our success comes from using insight intelligence and imagination to provide expert advice and robust – often unique – solutions on weather insurance for construction risks
  • We build partner teams to work side-by-side with you, our network and the market to deliver responses which are carefully considered from all angles
  • Our integrated team of experts work together delivering innovative solutions which have challenged and continue to shape the construction industry.
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