Refurbishment and fit out—insurances
Produced in partnership with Gowling WLG

The following Construction practice note produced in partnership with Gowling WLG provides comprehensive and up to date legal information covering:

  • Refurbishment and fit out—insurances
  • Required insurance
  • Buildings insurance
  • Cover for the contractor
  • Cover for the sub-contractor
  • Hints and tips

Refurbishment and fit out—insurances

When refurbishment or fit out works are to be completed in an existing building or where an existing building is being extended, the employer under the buildings contract ordinarily selects Insurance Option C of the JCT Design and Build Contract or Standard Building Contract 2011 or 2016 editions ('Option C'). This is distinct from the insurance requirements for new buildings. See Practice Note: JCT contracts—insurance.

Required insurance

Option C provides that all risks insurance is to be taken out by the employer to provide cover in the joint names of the employer and the contractor on a composite basis in respect of the loss of or damage to both the existing structures (and their contents) and the new works. See Practice Notes: Contractors’ All Risks (CAR) Insurance and Joint names insurance—construction contracts.

The all risks insurance must be maintained until practical completion. Where the employer under a building contract is the freehold owner of the building or holds it on a very long lease, the existing structures will probably already be insured under the employer's annual buildings insurance policy, and the all risks insurance can be addressed in a number of ways:

  1. insure the existing structure under the existing buildings insurance and insure the works under an extension to this buildings insurance (one policy)

  2. insure the existing structure under the existing buildings insurance and

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