The importance of informing your broker about your contract works

If you’re planning to have contract works such as an extension carried out on your building, it’s important to let your broker know in advance. This is because of an increased risk of loss or damage to the building and its contents during the period of the contract works. If you don’t let your broker know, your insurance policy may be invalidated.

Your contractor may have confirmed that they have contractors’ all risk and public liability insurance in place, but in some cases, this will typically only cover the new structure that the contractor is building, not the existing one. This is why you need to inform your insurance broker of the upcoming works to ensure you’re covered.

JCT contracts

The JCT (Joint Contracts Tribunal) is a body that represents a variety of interests in the building and construction industries, and it produces standard contracts and guidance notes for use in the construction industry. JCT contracts are generally used for standard building projects and form the contract between an ‘employer’ and a ‘contractor’. In this case you would be the employer.

A JCT contract will include:

  • Details of the costs involved
  • Specifications of the project
  • The obligations of both parties.

The JCT contract will clarify each party’s roles and responsibilities during the project. This can include an obligation on you to arrange insurance for elements of the project in your own name or even in joint names with the contractor. Make sure you are aware of what you have agreed to in your contract. The JCT contract protects you as an employer against poor contractors, and also contains directions on how to deal with disputes.

One important aspect of the JCT Contract is that it stipulates who is responsible for the insurance. This is denoted by the clause that is selected and establishes what insurance requirements apply. This will often mean that your policy needs to be put into the joint names of yourselves as the employer and the contractor, for the duration of the works. This is something that we can arrange for you and can often be accommodated on your existing policy. There is usually an additional premium for this cover.

Get in touch

If you have a query about your upcoming works give us a call on 01564 730 900 to discuss your requirements, and allow us to answer any other questions you may have.