JCT 21.2.1 Insurance Cover
(JCT 19(2)(a) JCT 6.2.4 & JCT 6.5.1)
JCT Clause 21.2.1 Insurance (otherwise known as “non-negligence cover”) provides cover against liability for loss or damage to adjacent or surrounding property. The policy cover in extended to include work that is carried out by a contractor or subcontractor.
JCT 21.2.1 Insurance protects against expenses, liability, loss, claim or proceedings which may arise as the result of an injury or damage to any property which is not directly attributable to a negligent act. Often this type of problem arises out of work involving demolition, excavations, piling or underpinning as this can lead to damage to neighbouring properties including subsidence, heave, vibration, removal or weakening of support or lowering of groundwater.
The joint contracts tribunal 21.2.1 insurance cover protects you for damage that has not been caused by the negligence of the party carrying out the work. JCT Clause 21.2.1 Insurance is bought in addition to Liability and Contract Works cover. This is because a Public Liability policy only provides insurance protection against losses which arise from damage that results from negligence. In the absence of negligence being proven, a Public Liability policy will not make a payout. JCT 21.2.1 Insurance is available to ensure that the policyholder is covered in the event of this type of claim.
In some cases, a JCT Clause 21.2.1 contract will require the JCT 21.2.1 Insurance policy to be in joint names between the property owner and the main contractor. The contractor will be responsible for arranging the JCT Insurance policy, paying the premium and complying with the policy conditions. However, the cover provided by the JCT 21.2.1 Insurance policy is solely for the benefit of the property owner.