By opting for the appropriate clauses in your JCT contract, your client benefits from:
- retaining control of the insurance for one of their largest assets
- claims payments going directly to the your client, the employer
- a single basis of cover and terms for both the works and the existing structure, ‘all risks’
- having only one insurer to deal with, should a claim occur.
Peace of mind
- knowing that the insurance is active and that the premium has been paid
- knowing the sums insured are adequate for both the works and existing structure
- protection from contractors breaching the terms of the policy, via a non-invitiating clause
- subsidence cover.
- having only one excess to pay
- cover for damage by the contractor
- the Contractor’s All Risks (CAR) policy being decoupled, allowing for a discount in the tender.
These benefits are important and significant for your client for many reasons, but the main reasons are:
- control of the policy in terms of cost, timing and application
- direct payment of claims settlements, where the relationship with the contractor post-loss may be strained
- claims are still eligible even if the contractor has breached a policy condition without the knowledge of the client.