Insurance for drainage and sewer contractors

How insurance looks for drainage and sewer contractors

Drainage and sewer contractors install and rehabilitate stormwater drains, culverts, manholes and sewer lines, often within road reserves and built-up areas. Works are linear, with open trenches that advance along the route.

Because the ground is shared with water mains, electrical cables, telecoms and gas lines, damage to existing services is among the most common and expensive exposures.

Exposures to assess

These scenarios show where the insurance conversation usually becomes specific for this trade. They are exposures to assess with an insurer, not assurances that any policy will respond.

Excavation beside existing services
Records of buried services are incomplete or inaccurate. Check how the liability policy treats damage to underground services, what excess applies and whether the policy requires evidence that services were located.
Trench collapse
Unstable ground, vibration or rain causes a trench wall to fail, damaging the works, plant or adjoining property. Ask how contract works, plant and liability policies would each be approached.
Flooding of open trenches
A storm fills an open trench, displacing bedding and pipe. Review the treatment of water damage to the works and any conditions about dewatering.
Sewage spill or contamination
A live sewer is breached and effluent reaches a watercourse or a neighbouring property. Discuss how pollution is treated, particularly gradual versus sudden events.
Dewatering and settlement
Pumping water out of a trench lowers groundwater and causes settlement of nearby structures. Ask how removal of support and subsidence claims are treated.

Covers to discuss

Covers worth raising for drainage and sewer contractors, and why
Cover	Why it may matter
Contractors All Risk	Addresses the pipework, manholes and trenches as they are constructed.
Public liability	Central to claims for damage to services and adjoining property.
Plant All Risk	Excavators, loaders and pumps work in wet and unstable conditions.
Goods in transit	Pipes, manhole sections and precast units move frequently between depots and trench.
Design and construct	Relevant where you design drainage layouts or temporary works.

Information that helps us prepare a quotation

The route, depth and diameter of the pipes, and the ground conditions if known.
How you locate and protect existing services.
Shoring and dewatering methods.
Whether you design any element or work to the employer’s design.
The employer, contract form and insurance requirements.
Plant on site and how pipes are stored.

Frequently asked questions

Are underground services excluded from public liability cover?

They may be excluded, limited or subject to a higher excess depending on the policy. This is among the most important points to raise with the insurer, and our public liability page explains why.

Is pollution from a sewer spill covered?

That depends on the wording. Many policies exclude pollution except for sudden and accidental events, subject to conditions. Ask the insurer to explain how it applies to your type of work.