JCT Contract Insurance
JCT Contract Insurance
Property developers have diverse insurance needs due to the risky nature of their work. BJP understands the challenges you face as a property developer and can help you find a quality insurance plan that includes JCT Contract Insurance cover.
What is JCT Contract Insurance?
JCT Insurance helps property developers in the event of damage to an adjacent property, where negligence on the part of the contractor or architect is not the cause or can’t be proven.
As a property developer, you will probably insist that any contractor working for you holds Public Liability Insurance, which covers personal injury or damage to property arising from negligence. In a similar way, any architect working on the project should be covered by Professional Indemnity Insurance.
These are great starting points, but sometimes damage occurs to neighbouring properties for which negligence is either not an issue or cannot be proven. JCT Contract Insurance covers such situations and can protect developers against expense, liability, loss, claims or proceedings caused by factors outside the architect or contractor’s control.
JCT Contract insurance
Quality cover for property development businesses
Who can benefit from JCT Contract Insurance?
Property developers of all kinds and all sizes can benefit from having JCT Contract Insurance in place. In fact, it’s increasingly viewed as an essential cover for anyone undergoing a development project of any nature.
You can also benefit from JCT Contract Insurance if you are an individual undertaking your own building work. You may be building, refurbishing or extending your house or garden and have taken on the project management of the job, employing a contractor and/or architect. In this case, you effectively take the place of the property developer and would be liable for damage to neighbouring properties if negligence could not be proven.
While JCT Contract Insurance protects property developers, it’s important to note that it’s actually the main contractor who’s responsible for this particular cover. Developers should ask to see evidence of their policy.
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How does JCT Contract Insurance work?
If a neighbouring property were to subside or collapse due to the negligence of the contractor or architect, an insurance claim would be directed to them (covered by Public Liability or Professional Indemnity respectively). In theory the developer would have no liability.
However, in some cases, there is simply no evidence for negligence – either because it wasn’t a factor or because it’s impossible to prove. This could occur with work that involves the following processes:
And can trigger a number of serious problems, including:
- structural weakening
- removal of support
- lowering of groundwater
The results of these issues can cause catastrophic damage to neighbouring properties, for which the property developer may find themselves legally responsible by default.
JCT Insurance covers related compensation claims brought about by third parties. Although arranged by the contractor, it actually protects the developer.
Why take out JCT Contract Insurance with BJP?
We are independent, professional insurance brokers who offer personalised and impartial insurance solutions to property developers of all sizes. We source our clients insurance policies based on their unique needs, finding them the best deal with the most suitable insurer. With nearly 20 years’ experience in the field, we know the right questions to ask to make sure we find you quality JCT Contract Insurance to suit your property development business.
At BJP, we take a long term view of insurance and stay in touch with our clients to ensure that if their needs change over time, they remain fully insured. Our clients trust us to find them policies that strike a good balance between quality and price.
What’s more, in the unfortunate event that you have to make a claim on your JCT Contract Insurance, our experienced team of brokers will help you get a quick and satisfactory result.
If you are an architect also in charge of building the property, you should consider a full cover such as our Design and Construct Insurance. A design and construct insurance policy protects you and your business both financially, as well as in terms of your relationship with your client. Find out more about our Design and Construct insurance here.