The following Construction guidance note Produced in partnership with Fladgate LLP provides comprehensive and up to date legal information covering:
This Practice Note relates to the insurance provisions in the JCT Standard Building Contract, 2011 and 2016 editions.
The employer has an insurable interest in the works by virtue of owning the land and the works.
The contractor has an insurable interest in the works by virtue of being in possession of the site and its obligation to complete the works. The contractor retains possession of the site and the works until the practical completion certificate is issued and the employer is not entitled to take possession other than in accordance with the contract. This is stated specifically to be for the purposes of the works insurance (clause 2.4).
For further information about insurable interests, see Practice Note: Insurable interest.
As both parties have an interest in the works, the insurance policies taken out to insure the works are required to be in joint names.
A joint names policy is defined to be a policy which names the employer and the contractor as composite insured. This means that each has the benefit of the insurance policy as if they were separately insured. The significance of this is that if one party negates the insurance for any reason, the other party is still entitled to insurance cover. See Practice Note: Joint
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234