Non-Negligent Liability
Non-Negligent Liability Insurance, also known as Party Wall Insurance or 6.5.1 Insurance, covers claims where negligence cannot be proven.
Quick Summary
- What it is: Non-negligent liability insurance — also known as JCT 6.5.1 or party wall insurance — covers claims for damage to adjacent third-party property during construction where negligence cannot be established
- Why standard insurance does not cover it: Standard public liability insurance only responds where negligence is proven; non-negligent damage falls outside that scope and requires a separate, purpose-specific policy
- When it is required: It is typically required under JCT contracts, by local authorities, and by developers where works are in close proximity to third-party property, shared walls, or existing structures
- Project-specific cover: Policies are arranged on a project-by-project basis, with indemnity limits and policy duration aligned to the scope and programme of the works
- Who needs it: Contractors, developers, and employers under building contracts where works carry a risk of damaging neighbouring property, utilities, or infrastructure
Non-negligent liability insurance — sometimes called JCT Clause 6.5.1 insurance or simply 6.5.1 cover — protects contractors and employers against third-party claims for property damage that arises from the inherent nature of the construction works, even where no negligence can be established. It fills a gap that standard public liability policies deliberately exclude.
Why Standard Public Liability Does Not Respond
A standard public liability policy is triggered only where the insured has been negligent — that is, where there has been a failure to take reasonable care. Many construction activities cause unavoidable collateral damage to adjacent buildings and infrastructure purely by virtue of the physical forces involved: vibration from piling, ground movement from deep excavations, heave or settlement from dewatering, and loss of support from demolition. In these situations, no amount of care and skill on the part of the contractor would prevent the damage from occurring. Because there is no negligence, the standard public liability policy will not respond — yet the building owner or adjacent occupier still has a valid legal claim. Non-negligent liability cover steps in precisely here. It provides an indemnity in respect of third-party claims for physical damage to property (including buildings and structures) that results directly from the inherent and unavoidable consequences of the insured works.
What Does Non-Negligent Liability Insurance Cover?
| Cause of Damage | Examples | Policy Response |
|---|---|---|
| Vibration | Piling, driven sheet piles, compaction works, demolition by mechanical means | Third-party property damage and associated loss of use |
| Settlement | Ground consolidation following dewatering, surcharging of adjacent land | Structural movement claims from adjacent owners |
| Heave | Removal of tree roots, clay heave following basement excavation | Upward ground movement damage to slabs and foundations |
| Removal of support | Demolition of party walls, excavation adjacent to shared foundations | Subsidence or cracking to neighbouring structures |
| Weakening of support | Underpinning operations, tunnelling beneath adjoining premises | Loss or damage to adjacent property or its contents |
When Is Non-Negligent Liability Cover Required?
Non-negligent liability cover is most commonly specified in the contract insurance schedule, particularly under JCT contracts (Clause 6.5.1) and NEC contracts (equivalent provisions in the insurance table). The contract typically requires the employer or the contractor — or both — to hold this insurance for the duration of the works. Where it is not contractually mandated, prudent contractors undertaking high-risk activities will arrange it on their own initiative. Works that most commonly trigger the need for this cover include basement excavations and underpinning, driven or vibro piling programmes, demolition of structures adjacent to occupied buildings, tunnelling and sub-surface drainage works, and major renovation projects where existing structures are significantly altered. It is particularly relevant for work carried out in dense urban environments where there is limited separation between the construction site and occupied neighbouring properties.
Standalone vs. Extension
Non-negligent liability cover can be arranged in two ways. For a single high-risk project, a project-specific policy is tailored to the particular works, site, and contract value — providing a clean, defined indemnity period and a limit that accurately reflects the exposure. Alternatively, for contractors who regularly encounter this requirement, the cover can be structured as an annual extension to the contractors all risks programme, applying automatically to all qualifying projects up to a stated maximum contract value. Where a contractor is unable to negotiate the inclusion of non-negligent liability within their annual programme, a standalone project-specific policy remains available. In either case, the limit of indemnity should be carefully considered. Structural damage to adjacent buildings in an urban location can generate very substantial claims, and the policy limit should reflect the realistic worst-case exposure on the most complex project in the programme.
Why Choose Daines Kapp for Non-Negligent Liability?
Non-negligent liability is a specialist cover that many general commercial insurers do not write, and where they do, the conditions imposed can be restrictive. We have placed this cover as a standalone project-specific policy and as an extension within annual contractors programmes for over 30 years, working with specialist construction markets including Lloyd’s of London syndicates. When a contract insurance schedule specifies JCT 6.5.1 cover, we review the requirements in detail and ensure the policy wording satisfies them — not just the limit, but the precise operative clause and any exclusions that could leave the insured exposed at the point of a claim. Our in-house claims team is available to manage any notification and support you through the claims process.
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Frequently Asked Questions About Non-Negligent Liability Insurance
What is the difference between non-negligent liability and public liability insurance?
Public liability insurance covers claims arising from the insured’s negligent acts or omissions — a failure to take reasonable care that causes injury or property damage to a third party. Non-negligent liability insurance covers property damage claims where the insured has not been negligent: the damage has occurred purely as a result of the physical nature of the works, such as vibration from piling or ground movement from excavation. Standard public liability policies explicitly exclude these types of claim, which is why separate non-negligent liability cover is required where the contract specifies it or where the works create this type of exposure.
Is non-negligent liability cover the same as JCT Clause 6.5.1 insurance?
Yes. JCT Clause 6.5.1 (in the various JCT contract families) and equivalent provisions in NEC and other standard forms require the contractor or employer to obtain insurance against damage to existing structures and other property arising from collapse, subsidence, heave, vibration, weakening or removal of support, or lowering of groundwater. The insurance market commonly refers to this cover as “6.5.1 cover” or “non-negligent liability”, and they describe the same product. We review the precise wording of the contract insurance schedule to confirm that the policy arranged satisfies the specification in full. Where a contractor has been unable to negotiate the addition of 6.5.1 cover to their annual contractors all risks programme, we are able to facilitate a standalone project-specific policy to meet the contractual requirement.
Can non-negligent liability be added to an existing contractors policy?
In many cases, yes. Where a contractor holds an annual contractors all risks programme, non-negligent liability cover can often be added as an extension, subject to the insurer’s agreement and to the risk profile of the works being undertaken. The limit is usually set separately from the public liability limit and should reflect the largest potential exposure across the annual programme. For high-value or complex individual projects, a standalone project-specific policy may be preferable as it provides a dedicated limit and cleaner coverage terms tailored to that particular contract.
What limit of indemnity should I choose for non-negligent liability?
The appropriate limit depends on the nature and location of the works, the value of the surrounding properties, and any specific requirement stated in the contract insurance schedule. In urban environments, particularly where piling, deep excavation, or demolition is taking place adjacent to high-value residential or commercial property, limits of £5 million, £10 million, or higher may be appropriate. We assess the exposure on each project and recommend a limit that reflects the realistic worst-case claim scenario, not simply the minimum that satisfies the contractual requirement. We can source limits starting from as little as £500,000, with premiums from as little as £500 plus Insurance Premium Tax.
Does non-negligent liability cover damage to the works themselves?
No. Non-negligent liability is a third-party liability cover — it responds to claims made by third parties (neighbouring property owners, occupiers, or other affected parties) for damage to their property. Damage to the works themselves, including materials on site, the partially completed structure, and temporary works, is covered separately under contract works (contractors all risks) insurance. Both covers are typically required on significant construction projects, and we structure them together as part of a coherent contractors insurance programme.
Do I need non-negligent liability for a renovation project?
Potentially, yes — especially where the renovation involves structural alterations, extensions, basement conversions, or any work adjacent to a party wall or shared foundation. Even where the contract does not explicitly require it, a contractor undertaking works with significant vibration, excavation, or demolition risk in close proximity to neighbouring properties should consider this cover. For single project and renovation insurance, we review the scope of works and advise on whether non-negligent liability exposure exists and how best to address it.
