NEC contracts—insurance

The following Construction practice note provides comprehensive and up to date legal information covering:

  • NEC contracts—insurance
  • Insurance provisions in the ECC
  • Clause 80—Client’s liabilities
  • Clause 81—Contractor’s liabilities
  • Clause 82—Recovering costs
  • Clause 83—Insurance requirements
  • Contractor’s All Risks cover
  • Public liability insurance
  • Employers’ liability insurance
  • Joint names
  • More...

NEC contracts—insurance

This Practice Note considers the allocation of risks and the insurance requirements in the NEC Engineering and Construction Contract (ECC). It considers the type of insurance to be maintained by both parties including Contractor’s All Risks insurance and public liability cover. For a more general background on the NEC3 and NEC4 suite of contracts, see Practice Note: NEC contracts—introduction.

For details of how insurance is dealt with under other standard form contracts, see Practice Notes: JCT contracts—insurance, FIDIC contracts 2017—insurance and FIDIC contracts (pre-2017 editions)—insurance.

This Practice Note covers both the NEC3 and NEC4 editions of the ECC. For consistency, the term ‘Client’ is used throughout as this is the term used for the developer/employer in the NEC4 contracts (the NEC3 ECC uses the term ‘Employer’). For a glossary of NEC terms, see Practice Note: NEC contracts—glossary. Where no distinction is made between clause numbers, the clause numbers throughout this Practice Note refer to both the NEC3 and NEC4 versions of the ECC.

Regardless of whether the parties choose to amend the standard NEC ECC insurance terms (by way of Z clauses, for example, see Precedents: NEC4 ECC—Z clauses and NEC3—Z clauses [Archived]), it is crucial for every project that both clients and contractors consult their insurance advisors to ensure that the insurance coverage is adequate. Amendments to the standard provisions should always be made with

Popular documents