Weather Insurance for Construction Projects

Adverse weather can affect a construction project in many ways. Historically, contractors have carried these risks and have managed them through risk pricing and program 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 both productivity and the construction program

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 program

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 defenses or other works, such as cofferdams, being overtopped. This may interrupt or delay the construction program


weather insurance

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

Together with our clients, we work to estimate what loss would be sustained beyond the anticipated period of delay. As such, we ensure most of the claim negotiation and quantification is undertaken before a policy is placed.

Our contractors are utilizing weather products in a number of ways to better protect their projects and investments.

weather insurance

Before contract formation, during the bidding phase, contractors are utilizing 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 it is cost effective to do so.

Key Stats

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


  • JLT solutions are tailored to our clients' need to cover either a single project or provide protection across an annual program of work
  • Our success comes from our in-depth knowledge and industry experience, and we provide expert advice and innovative solutions for construction risks
  • We build partner teams to work side-by-side with our clients, our network, and the market to deliver responses that are carefully considered from all angles
  • Our integrated team of experts work together  to deliver unrivalled service and innovative solutions, which have challenged the status quo and continue to shape the construction industry

Read our latest insights