CivilCovered

Insurance guides · 4 min read

Construction insurance checklist: what to discuss with a broker before a project

Before you speak to a broker, gather the project description, the contract’s insurance requirements, your plant and subcontractor details and your claims history. Then work through the covers that may apply: the works, third-party liability, plant, goods in transit, employees and any professional or special-risk exposure. Compare quotations against the contract, not just on price.

1. The project

Describe the work clearly

  • What you are building, where, and for whom.
  • The contract value, including variations and materials supplied by the employer.
  • Start date, duration and the defects liability period.
  • Special activities: blasting, piling, working in or near water, work near live services, work at height or underground.
  • Existing structures, services and neighbours close to the works.

2. The contract’s insurance requirements

Read before you speak to the broker

  • The contract form and the insurance clauses, contract data or schedule.
  • Who must arrange each cover: contractor, employer or both.
  • Minimum limits, maximum excesses, period of insurance and required wording.
  • Who must be named as an insured, and any waiver of recovery rights.
  • Evidence required, in what form and by when.
  • Any guarantee or other security the contract requires.

Insurance after winning a tender explains how to extract these items.

3. The covers to raise

Covers to discuss and the question each answers
CoverQuestion it helps answer
Contractors All RiskWhat happens if the works are damaged before completion?
Public liabilityWhat happens if a third party is injured or their property is damaged?
Plant All RiskWhat happens if my machines are damaged or stolen?
Hired-in plantWhat am I responsible for when equipment is hired from someone else?
Tools and equipmentWhat about portable tools and small equipment?
Goods in transitWhat if materials or equipment are lost on the way to site?
FleetWhat about my vehicles and road-going machines?
Employers’ liabilityHow do my obligations to employees relate to insurance?
Professional indemnityWhat if my design or advice is wrong?
SasriaWhat about riot, strike and public disorder?

4. Plant, subcontractors and security

Details insurers will ask for

  • A plant schedule with values, and details of hired-in equipment.
  • How plant and materials are stored and secured on site.
  • Subcontractors, their trades and their insurance.
  • Labour arrangements: employees, fixed-term staff and labour-only subcontractors.
  • Traffic accommodation and any work close to public roads.
  • Your claims history and the details of existing policies.

5. Comparing quotations

  • Check each quotation against the contract’s requirements, line by line.
  • Compare limits, excesses, exclusions and conditions, not just premiums.
  • Ask what is excluded, particularly underground services, defects, water damage and theft conditions.
  • Check the period of insurance and what happens if the programme extends.
  • Confirm who is insured and that the policy matches the sum insured and values you declared.
  • Ask what happens in a claim: who you notify, what you must preserve and what evidence is needed.

6. After you accept

Keep control of the programme

  • Store the policy documents and evidence of insurance with the contract file.
  • Diarise expiry, extensions and renewal dates.
  • Update the insurer when the contract value, scope or programme changes.
  • Know who to contact and what to gather if something goes wrong. See claims assistance.

7. Red flags to look for

Reading a quotation closely is part of the job. These are the patterns that most often cause trouble later, and each can be raised before you accept.

Quotation red flags
What you seeWhy it matters
A sum insured that differs from the contract valueA low figure can lead to a reduced claim. A figure that ignores variations or employer-supplied materials has the same effect.
A period that ends before the programme doesA gap at the end of a delayed project leaves the works uninsured.
An excess higher than the contract allowsYou may be in breach of the contract even though you hold a policy.
Exclusions for exposures you actually faceUnderground services, water damage, theft from unfenced sites and work near neighbours are common examples.
Security conditions you cannot meetCover for theft can depend on fencing, guarding or tracking you do not have on a given site.
Insured parties missingIf the contract names the employer or a main contractor, the policy usually has to name them too.

Ask us to go through any quotation against the contract before you accept it.

Common questions

Do I need every cover on this checklist?

No. The checklist is a prompt for a conversation, not a shopping list. Which covers matter depends on your work, your contract and your assets.

What are red flags in a quotation?

Common ones are a sum insured that does not match the contract value, a period that ends before the programme does, an excess higher than the contract allows, and exclusions that remove cover for exposures you actually face, such as underground services.

Should I compare quotations on price alone?

No. Compare limits, excesses, exclusions and conditions against what the contract requires. A cheaper quotation that does not meet the contract can cost far more in the end.

Who should receive the policy documents?

Keep them with the contract file, and give copies to whoever manages the project’s compliance. Send evidence to the employer in the form the contract specifies.

Ready to talk it through?

Send us your project details and your contract’s insurance requirements, and we will work through this checklist with you.

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An enquiry does not put cover in place. Cover is subject to underwriting and policy terms.

Sources and further reading

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Tell us about your work and your contract’s insurance requirements. We will review them and help arrange suitable cover.

Submitting an enquiry or requesting a quote does not put cover in place. Cover is subject to underwriting and policy terms.

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