JCT 21.2.1 Insurance
JCT 21.2.1 Insurance
JCT 21.2.1 Insurance provides critical cover for builders, contractors, developers and individuals undertaking renovation, or any new build, in and around neighbouring buildings where a non-negligent claim could be made due to any possible damage caused to surrounding buildings because of your building activities.
All structural, underpinning, piling, demolition or excavation works are not without risk and JCT 21.2.1 insurance will safeguard your business should the worst happen.
Who needs JCT 21.2.1 Insurance cover?
Contractors, builders or developers would normally take JCT21.2.1 Insurance as part of a construction or renovation project for the benefit of the property or landowner who is referred to as the “employer” in a JCT contract.
All construction works are hazardous, especially when working close to other buildings and structures. Should damage to a neighbouring structure be fault of the contractor undertaking the project, this is where Non-Negligence Liability comes into play.
Potential construction hazards that could arise as part of a project that would be covered include (but not limited to):
- Foundation Excavation
- Underpinning
- Activities that may affect a load bearing capacity of a structure
- Shoring of walls
- Demolition activities close to a neighbouring structure
- Lowering of Ground Water
- Subsidence
- Vibration
Why Choose Konsileo for your JCT 21.2.1 Insurance
Here at Konsileo our large team of construction brokers have a wealth of experience dealing with the construction sector and its contracting trades. Our transparent risk management approach, coupled with our industry expertise, allows us to provide bespoke insurance solutions that meet your specific needs. JCT Insurance requires a careful risk managed approach and our team can help ensure you have the covers you need.
Frequently Asked Questions
JCT 21.2.1 insurance refers to the insurance requirements under Clause 21.2.1 of the Joint Contracts Tribunal (JCT) Standard Building Contract. It applies where the employer is responsible for arranging insurance to cover the existing structure and the contract works during a construction project. This type of insurance helps protect both parties against risks such as fire, flood, storm damage, and other insured events while building work is being carried out on an existing property.
JCT 21.2.1 insurance is typically required when construction work is taking place on an existing building that remains the responsibility of the employer to insure. It is commonly used for refurbishment, renovation, extension, alteration, and fit-out projects where the existing structure needs to remain insured alongside the contract works. The contract documents will specify whether Clause 21.2.1 applies.
Under JCT Clause 21.2.1, the employer is generally responsible for arranging and maintaining insurance for the existing structure and the contract works. The policy should comply with the requirements set out in the JCT contract and usually notes the interests of both the employer and contractor. Contractors should always request confirmation that the appropriate insurance is in place before work begins.
JCT 21.2.1 insurance typically covers damage to the existing building and the contract works caused by specified insured risks, such as fire, lightning, explosion, flood, storm, escape of water, and malicious damage, depending on the policy wording. Cover is intended to help ensure that repair or reinstatement costs following an insured event do not delay the project or create disputes between the employer and contractor.
The main difference lies in who arranges the insurance. Under JCT 21.2.1, the employer arranges insurance for both the existing structure and the contract works. Under JCT 21.2.2, insurance arrangements may differ depending on the contract and project circumstances, particularly where work is carried out on existing structures and insurance responsibilities are shared or allocated differently. It is important to review the specific JCT contract and seek professional insurance advice to ensure the correct cover is in place.
Standard property or contractors' insurance may not fully satisfy the insurance obligations required under a JCT contract. Specialist JCT 21.2.1 insurance is designed to meet contractual requirements while protecting the existing building, the contract works, and the interests of all relevant parties. Having the correct cover can help avoid delays, contractual disputes, uninsured losses, and issues with project funding or lender requirements.