Employer controlled construction project insurance

Why do you need construction project insurance as an employer?

Traditionally, the responsibility to arrange the insurance for major construction projects is left to the main contractor. However, it is not uncommon for such insurance arrangements to become fragmented which can increase the risk of gaps or duplication of cover, which in turn may increase insurance costs.

If you’re relying on construction insurance cover that has been arranged by someone else such as a contractor, can you be sure the cover is adequate for your project?

If you're planning a new build or other significant construction project, we normally recommend an employer controlled insurance programme (ECIP).

  • Staying in control
    Cover arranged by the employer provides control over the policy, costs and ensures claims are paid directly, instead of passing through the contract chain to contractors and sub-contractors.
  • Insurance cover for businesses of all sizes 
    We provide construction project insurance solutions for various size businesses across the industry including single construction projects.
  • Tailored to your needs
    We will work with you to fully understand your business, contractual obligations and liabilities, and tailor an insurance solution that works best for you, by covering all relevant construction risks.

How our construction insurance brokers can help

We can work with legal advisors to ensure that the insurance clauses within the contract clearly reflect the construction insurances that will be arranged within an ECIP to avoid any confusion in the cover provided and duplication of insurance costs. This includes funder requirements such as coinsured and first loss payee. 

What's included in an ECIP?

Our employer controlled insurance programme (ECIP) can include:

  • Contract works - all risks of physical loss or damage
  • Existing property - all risks or specified perils to the retained/existing structures
  • Increased costs - cover for increased costs on the works/or works not complete after damage
  • Delay in start up - includes loss of rent, profit and interest after damage to the works
  • Public liability - cover for owner/employer/project manager only
  • Non negligence JCT 6.5.1 - cover for all parties can be arranged if this clause is applicable in your construction contract

We can also help with assessment of the construction risks, broking, negotiating with lenders and advisers, preparation of evidence of cover and policy documentation. During the assessment it may become clear that the following covers are advised:

  • Rights of light cover
  • Latent defects cover
  • Contingency covers including chancel liability, defective title and restrictive covenant