What is Non-Negligent Liability Insurance?

Construction sites present unique risks. Even with the utmost care, accidents and unforeseen circumstances can occur. Non-negligent liability insurance provides additional protection, beyond that provided under a standard Public Liability Insurance policy, for property owners, contractors and developers.

Non-Negligent Liability Insurance is also known as “Party Wall Insurance”, referring to the contractual agreement which often demands the cover. It is sometimes also called “6.5.1 Insurance”, which references the Joint Contracts Tribunal clause 6.5.1 which also stipulates the requirement for the cover.

Do I need the cover?

Sometimes this specialist insurance is mandated by contract, either Party Wall Agreements or JCT Contracts. Even where there are no contractual obligations, if the works are of a nature that properties in the vicinity could suffer damage during the works, cover may be appropriate. If you are unsure, it may be worth discussing the exposure with a party wall surveyor. Alternatively, please give us a call to discuss the project particulars.

What does it cover?

Unlike traditional public liability insurance, which generally covers claims arising from negligence, the insurance safeguards you against claims where fault cannot be proven.

This insurance is very useful because it can be difficult to prove negligence in construction-related damage, especially where factors beyond your control can lead to damage to neighbouring properties or structures. It also protects the property owner from significant financial losses.

For instance, if ground movement caused by your excavation damages a nearby building, even if you’ve taken all necessary precautions, you could be held liable. Other examples of damage to neighbouring properties include collapse, subsidence, heave, vibration, weakening or removal of support, and lowering of groundwater. Non-negligent liability insurance covers the resulting costs. In comparison, if you only held public liability insurance, you would not be covered.

Key Benefits of Non-Negligent Liability Insurance

• Financial Protection: Covers costs related to property damage, legal fees, and compensation.
• Peace of Mind: Knowing you’re protected against unexpected claims can reduce stress.
• Contractual Requirements: Many contracts stipulate non-negligent liability insurance as a condition, for instance party wall agreements and JCT 6.5.1 clauses.

Experienced Difficulty Obtaining Cover?

Have you struggled to get your existing public liability or buildings insurer to provide non-negligent liability cover? Don’t worry, most of our clients in this area have had the same problem! Many insurers are unwilling to provide the cover as there is a lack of understanding of this complex area.

At Daines Kapp we are able to provide cover on a specialist standalone policy. If your property is undergoing renovations, we may also be able to provide specialist renovation cover, including the building, contract works, public liability and non-negligent liability, all under one policy! Regardless of your circumstances, we will work hard to find a policy which is suitable for your needs.

Tailoring Coverage to Your Project

The specific needs of your construction project will determine the indemnity limit required. Factors such as project size, location, and complexity influence the limit which may be necessary. Our experienced brokers can assess your project and recommend the most suitable insurance package.

Contact us today to discuss your insurance needs with our team of experts.