Contractors insurance

With contractor risks continuing to evolve across a diverse range of territories, each with their own unique political, legislative, cultural, or geographical factors, contractors require innovative insurance solutions to respond to their complex risk profiles.

Since its foundation over 30 years ago, JLT’s Construction Practice has evolved into the market's leading provider of insurance and risk management advice to contractors.

Our contractors’ team are dedicated specialists who work seamlessly together to provide unrivalled service to our clients and innovative risk management solutions, which shape the construction insurance industry.

KEY RISKS

Claims Consulting >

Construction All Risks (CAR) >

Employers' Liability >

Environmental Liability >

Public Third-Party Liability >

Surety Bonds >

Weather Insurance >

WHAT WE DO

Our global team of 375+ construction specialists work with some of the largest contractors in the world across a number of territories.

Our service proposition is distinctive. Instead of providing a generalist transactional insurance broking team, which relies on specialist support for technical issues, our team are experts in contractor and construction

JLT’s construction service team has the experience and expertise to understand your business and deliver insightful, actionable advice without the need for external support.

JLT’s collaborative culture means we actively share our knowledge to ensure clients are informed of current and developing risk and insurance trends which may impact their business.

FAQ

I am a contractor delivering a city center building project adjacent to neighboring buildings and I have been asked to sign a crane over-sail license so that I can travel my equipment over neighboring property. Will my third party liability (TPL) insurance cover the liabilities arising from the agreement?

Standard TPL insurance protects for common law liabilities only. Where these agreements extend liability beyond common law obligations, contractual liability insurance coverage is required. This can be provided under annual insurance programmes but these must be very carefully drafted by a specialist insurance broker. Alternatively, project specific contractual liability coverage can be tailored to transfer this risk. It is also available through specialist construction brokers.

I am a contractor tendering for a contract to deliver residential accommodation. I have been asked to accept a fitness for purpose (FFP) warranty in relation to the design of the works. The architect was originally employed by the project owner and would be novated to me if I am successful. Can I get Professional Indemnity (PI) cover for this FFP obligation?

Basic professional indemnity (PI) policies only cover professional negligence and this would need to be demonstrated to claim successfully. Some onerous wordings exclude liabilities arising under FFP obligations and this can also exclude losses even where there has been a negligent act. A high quality PI wording will cover civil liabilities and this will include FFP obligations, subject to some conditions and qualifications. Our specialist construction insurance broker will be able to guide you through the coverage options available.

I am a building contractor and I have completed and handed over a cold-storage warehouse project to my employer approximately three years ago. There has been a fire caused by defective electrical wiring which has damaged the handed over works and the stock of goods stored inside. Will I be covered for my liabilities and under which policy?

As the defects rectification period has passed there will be no cover under the Construction All Risks (CAR) policy for this project. Your third party liability (TPL) policy should respond in relation to legal liability for the loss of contents. Cover for the damage to the building itself (along with consequential loss) will depend on whether your TPL policy has been drafted to include liabilities arising from completed contract works and contractual liability. This is a very complex area of TPL coverage and one which is critical in delivering value to the policyholder. Our specialist construction insurance broker will be able to guide you through the coverage options available.

I have employed contractors to undertake a large, complex construction project that involves some demolition as well as an extension to, and refurbishment of, an existing structure. Are there any special insurance considerations?

You should consider an owner controlled insurance program (OCIP) in which the owner arranges these insurances from the commencement of demolition to continue through until completion of the fit-out works, and is designed to meet the needs of all stakeholders involved.

WHY JLT

UNMATCHED EXPERTISE
Since its inception over thirty years ago, JLT’s Construction Practice has matured to the market-leading provider of insurance and risk management advice to contractors. Our team consists of dedicated specialists who work seamlessly together to provide an unrivalled service to the industry.

PARTNERSHIP
We have developed the market’s leading construction business through successful, long-term partnerships with our clients. In our approach we work closely with clients to develop in-depth knowledge of their business and its needs.

INNOVATION
JLT’s global team of specialists implemented an innovative approach to the broking of a major UK contractor’s excess casualty and professional indemnity programs.

Historically, the three classes, employers' liability (EL), professional liability (PL) and professional indemnity (PI) had been written as separate programs with different insurers.

Initially JLT spent time analyzing the insurer participations to understand the level of capacity committed across all three classes and identify the premium generated.

By identifying competing capacity and understanding the insurers’ appetites, JLT was able to design an integrated program for a combined primary PL and PI layer.

While the final placement included separate limits for each of the classes within the policy, challenging premium targets and increased limits were achieved. The (total cost of risk) benefit to the client was valued at approximately £1,000,000.