Many clients are today asking for non-negligent-Liability Insurance or JCT Clause 21.2.1. and similar insurance.
So what does non-negligent Liability insurance cover?
OK, lets put it into prospective with a large build like a block of flats. Before this build took place there would have be groundwork’s taking place as part of a building contract. The main builder would have in place a contractors insurance to cover all the works either undertaken by their employee or by a sub-contractor.
The type off works carried out for a build like this would firstly entail detailed drawings from the architect/engineer and then excavation works would begin. The extent of the excavation is dependent on the structural engineers and the building inspector and the state of the ground which is being built upon.
If the ground is not good and standard foundation works cant be carried out then the builder will have to carry out engineered foundations works. They are called engineered foundations works as it is the structural engineer who decides on exactly what foundations works need to carried out at a deeper depth. Digging and filling with concrete as per usual foundation works could then become costly .. so an alternate is then usually put in place which is Piling. Piling is an activity usually carried out where there needs to be deeper foundations in places in a couple of places . Piles are driven into the ground and are then filled with concrete.
So the above is an explanation into what sort of works are carried out for foundation works and why JCT insurance is so important. The fact is that the neighbour is paranoid and wants everything covered. If you do not have JCT insurance in place and over a course of a couple of years some cracks start to appear on a neighbouring property …. then the loss assessor comes around and says that its actually nothing to do with the works of the tradesman as everything has been done to plan and in an adequate manner .. but it is actually due to the unsettlement of the ground, then you will fall liable for the cost of the third party damage. But with a JCT 21.2.1 insurance contract, this eventuality shall be covered and you will be able to sleep at night.
