Do Design and Build Insurance Policy Wordings Fit the Bill?

Jeffrey Brown

January 2011

A paper based on a talk given to a meeting of the Society of Construction Law in London on 12th October 2010

Jeffrey Brown looks at the policy wordings offered to design and build contractors seeking to obtain insurance against their design risk and liabilities, asking whether they are likely to provide contractors with the cover they need. He also considers various aspects of the insurance, emphasising that contractors need to appreciate what policies cover but also what their limitations are.

Introduction - The need to take out insurance - The principal policy cover - 'Supervision' of design activities - Fitness for purpose obligations - Novation - 'Claims made' - Notification of claims and circumstances - Changing insurers - One claim or many? - Policy exclusions - Duty of disclosure - Global claims - Mitigation of loss provisions - Adjudication - Partnering - PFI contracts - Associated companies and joint ventures - Collateral warranties - Summary and conclusion.

The author: Jeffrey Brown is a partner at Veale Wasbrough Vizards, based at their London office. He is also a Chartered Insurance Practitioner.

Text 13 pages.