By Angela Irvine, sales director at The Bletchley Group (Bletchley).

Construction activities may cause loss or damage to existing buildings or structures adjacent to the site of interest. So, even when negligence towards a contractor cannot be established, it is advisable to arrange insurance. In fact, it is often a requirement for Joint Contracts Tribunal (JCT) contracts.

What is JCT 6.5-1 non-negligent liability?

JCT non-negligent insurance provides cover against damages to third party property, arising from contract works, caused by:

  • Collapse
  • Subsidence
  • Heave
  • Vibration
  • Weakening or removal of support
  • Lowering of groundwater

Cover can be arranged on a standalone basis or as part of a specific project alongside the contract works and liability requirements.

Why do I need JCT 6.5-1 non-negligent liability insurance?

While it might seem strange to organise liability insurance when there is no negligence, it is sometimes mandated through contracts, either party wall agreements or JCT contracts. And even in the absence of contractual obligations, if the works are of a nature that properties in the vicinity could suffer damage during the works, cover may be appropriate. 

Besides, despite taking all safety precautions and following the necessary regulations, damage to neighbouring properties may still occur through unforeseen factors. This can present challenges in attributing the damage to negligence. The biggest benefit of having JCT 6.5.1 insurance is that you’re covered in these instances. Not having cover in cases of non-negligence could result in significant financial implications.

Non-negligence insurance protects, where a public liability policy cannot. This is because a standard public liability policy will only indemnify against damage to third party property or persons which has resulted from their negligence. 

Are there any exclusions?

Any and all insurance policies come with come exclusions, so understanding these is key. For JCT liability, exclusions include (but are not limited to):

  • Loss or damage arising from negligence
  • Damage that is considered to be inevitable when carrying-out the works (uninsurable risk)
  • Damage or loss as a result of the design of the works

Knowing your contractual requirements for insurance is critical, but even when JCT liability isn’t a prerequisite it provides significant protection for finances, projects and businesses. To discuss your insurance needs, please call 0121 803 3760 or email info@thebletchleygroup.com

The Bletchley Group is a partner of the National Federation of Builders and works with an extensive network of market-leading insurers.