At Champion Insurance Group, we’ve supported the UK construction industry for years. As Chartered Insurance Brokers, we understand that construction projects, whether a single residential build or a multi-million-pound high-rise, carry a wide range of risks.

From site safety to structural integrity, insurance plays a key role in protecting your people, your project, and your balance sheet. This guide outlines the main types of construction insurance that firms should consider when taking on a large contract.

✅ Employers’ Liability Insurance
Covers injury or illness suffered by employees as a result of their work. This is legally required in most cases under the Employers’ Liability (Compulsory Insurance) Act 1969. Construction is a high-risk environment. Employers’ liability insurance ensures your workforce is protected and that you comply with UK law.

✅ Public & Products Liability Insurance
Protects your business against claims from third parties for personal injury or property damage arising from your operations, and from issues related to products you’ve supplied or installed. Vital for any firm operating on site, this cover provides reassurance in case accidents impact clients, neighbours, or the general public.

✅ Contract Works Insurance
Also known as “contractors all risks,” this covers the cost of repairing or reinstating works that are damaged by events like fire, flood, theft, or storm during the build phase. It can be arranged on an annual basis to cover multiple projects, or as a project-specific policy tailored to a single contract.

✅ Project-Specific Contract Works Insurance
This form of contract works cover is arranged specifically for one project. It can be taken out by either the contractor or the employer, depending on the terms of the building contract.

Why it’s useful:

• It provides cover from start to finish, including the defects period.
• The policy terms can be aligned precisely with the contract (e.g., JCT or NEC).
• It’s particularly effective on high-value or high-risk developments, or where there are joint venture partners or funders involved.

✅ Owner-Controlled Insurance Programmes (OCIPs)

An OCIP is an insurance programme arranged by the employer rather than the contractor. It typically includes contract works, public liability, non-negligence, and advance profits/delayed start up all under a single policy that covers all parties involved in the project.

Benefits include:

• Cost efficiency by consolidating premiums and removing duplication.
• Consistent cover across all contractors and subcontractors.
• Greater control and clarity for funders and developers.

OCIPs are increasingly popular for large-scale residential schemes, infrastructure works, and high-rise developments, especially where multiple contractors are working under separate packages.

✅ Plant & Equipment Insurance
Covers owned and hired-in plant against theft, accidental damage, and other risks. Hired-in plant insurance also includes liability for continuing hire charges. Plant is one of the most valuable assets on any construction site and protecting it is essential to avoid disruption and cost.

✅ Professional Indemnity Insurance
Protects against claims of professional negligence, such as faulty design, incorrect specifications, or poor advice—whether or not a mistake was actually made. This cover is critical for contractors with design responsibility or those offering consultancy and project management services.

✅ Non-Negligence Insurance (JCT Clause 6.5.1)
Protects against damage to neighbouring properties caused by construction work, even where no party is found to be negligent such as from vibration, collapse, or subsidence.
Commonly required in JCT contracts, this policy offers peace of mind on projects where there’s potential to affect third-party property.

✅ Latent Defects Insurance (Structural Warranty)
Provides long-term protection against major structural issues that become apparent after project completion, typically over a 10- to 12-year period. Unlike professional indemnity cover, latent defects insurance doesn’t require the policyholder to prove negligence, making it highly valuable for developers, investors, and property owners.

✅ Advance Loss of Profits / Delay in Start-Up (DSU)
Covers financial loss (e.g. rental income or business interruption) due to a delay in project completion following an insured event like fire or flood. Ideal for developers and property owners who need the project to generate income as soon as it’s finished.

✅ Environmental Liability Insurance
Provides cover for clean-up costs, damage to natural resources, and third-party claims following pollution or environmental damage. Especially important for sites near watercourses, brownfield land, or sensitive ecosystems.

✅ Structural Warranty / New Home Warranty
Similar to latent defects cover, this is required by most mortgage lenders for new homes and offers protection to buyers and developers against construction defects. It enhances buyer confidence and helps meet lending and regulatory standards.

✅ Terrorism Insurance
Covers damage caused by acts of terrorism—risks that are often excluded from standard construction or property insurance policies. Commonly required for high-profile or city-centre developments, or projects with public exposure.

✅ Directors’ & Officers’ (D&O) Insurance
Covers directors and senior managers for claims made against them in their personal capacity such as health & safety prosecutions, regulatory investigations, or investor claims. Protects the decision-makers behind the business and is increasingly expected by funders and stakeholders.

How Champion Insurance Group Can Help
At Champion, we don’t believe in one-size-fits-all solutions. We’ve arranged insurance for everything from self-build homes to high-rise, owner-controlled programmes. Whether you’re a contractor, developer, or specialist trade, we build insurance programmes that match your contract structure, site conditions, and project goals.

We advise on:

• Owner-controlled vs contractor-controlled insurance programmes
• Project-specific insurance for major schemes
• Contractual insurance obligations (JCT, NEC, FIDIC)
• Cost-effective programme design across multiple projects

Why Work With a Chartered Broker?
As Chartered Insurance Brokers, we’re committed to the highest standards of technical knowledge, service, and ethics. Our construction team combines deep sector insight with personal service, helping you understand and manage your risks with confidence.

Let Champion build an insurance solution perfectly tailored to your project. Contact our construction insurance team today to arrange a consultation.

📞 03330 430 430
🌐 www.ChampionInsure.co.uk/construction

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