JCT 6.5.1 (Non-Negligence): Think You’re Covered?

JCT 6.5.1 (Non-Negligence): Think You’re Covered?


Simon Foweraker
Managing Director, Construction, Pen Underwriting

Where cover is operative as an automatic extension under a Contractor’s Public Liability (PL) section, it is usually conditional upon the contractor notifying their insurer (with a fairly standard set of details) no later than 7 days after entering into the contract or starting the work, and agreeing to pay the required premium.

We are seeing many examples where contracts have not been notified and, therefore, are not covered due to misunderstandings about this automatic provision.

This is particularly concerning as the contractor derives no direct benefit from this cover; the sole beneficiary is the owner of the property being worked upon (the Employer). Where required, and in the event of a loss occurring, there will usually be evidence of a contractual obligation on the part of the contractor – typically under JCT terms – to have arranged the insurance. This can leave legal action inevitable. Where no claim has arisen but the cover cannot be evidenced, the Employer may withhold outstanding payments until the policy is provided.

It is essential to check the policy wording and obligations to ensure oversights and misunderstandings are avoided.

At Pen Underwriting, we aim to eliminate this confusion by not providing an automatic extension. We see this as a benefit. If you need the cover, speak to one of our experts for guidance. With over 20 years of experience in the construction sector, we have particular expertise in JCT 6.5.1 or similar intention wordings. This includes everything from stand-alone cover to Employer-led single projects where non-negligence is required, in addition to cover for the works, existing structures, terrorism, and property owners’ liability.

Applications can be downloaded from our website. For further assistance or enquiries, get in touch with the team or email UK_ConstructionEnquiries@penunderwriting.com.

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