The Power of Joint Names Insurance – Protect Your Build | JCT Insurance
The Power of Joint Names Insurance
When you take on a building project, you’ll hear a lot of insurance jargon. One phrase that often comes up in building contracts – and is just as often misunderstood – is “joint names insurance”.
It might sound like another layer of paperwork, but in reality, joint names cover can make the difference between a smooth claim and a lengthy, expensive dispute.
What Is Joint Names Insurance?
Joint names insurance means that the property owner (you) and the contractor(s) working on your project are all insured together under one policy. This policy covers both:
- The existing property (if any)
- The works in progress
Because all parties are named, the insurer can’t turn around and claim against one party to recover their costs. This removes a major cause of delay in insurance claims during construction.
Why It Matters
Without joint names cover, claims can quickly become tangled in arguments about fault.
- Was the damage caused by existing defects in the building?
- Was it the contractor’s workmanship?
- Did a subcontractor make a mistake?
If each party has their own separate insurance, each insurer may argue that the other should pay. This back-and-forth can stall repairs for weeks or even months – not ideal if you’ve got a gaping hole in your roof or fire damage to deal with.
Real-World Example
During a major refurbishment, a fire broke out due to faulty wiring. The cause could have been:
- An old, damaged circuit in the existing building
- Poor workmanship by the electrical contractor
- Faulty new wiring
Because the property owner insured the building, the contractor insured the works separately, and there was a further policy in place to cover the contractors public and products liabilities, the insurers disagreed for months over liability. The project ground to a halt until the dispute was resolved.
If both parties had been insured under joint names, the claim could have been settled immediately without a fight.
How Joint Names Works in Practice
With joint names cover:
- You, the property owner, take out a Building Project Insurance policy in your name.
- The contractor (and sometimes key subcontractors, such as electricians) is added as an additional insured.
- The policy covers both the existing building and the works under one umbrella.
- If there’s a loss, the insurer pays out directly under the single policy – without trying to recover from another insured party.
- Your contractor will still need to take out their own public and employers liability cover.
When Joint Names Is Recommended
Joint names insurance is especially useful if:
- You have a formal building contract (many contracts require it)
- The works are complex or involve multiple contractors
- You’re concerned about delays from potential disputes
- Your lender or contract administrator has specifically requested it
Although these are examples of where you are most likely to expect a Joint Names approach it is important to remember that even smaller projects will benefit from this type of cover.
Protecting Everyone’s Interests
It’s worth noting that joint names insurance isn’t just for your benefit – it also protects the contractor. Because the insurer can’t pursue them for recovery under the same policy, they have peace of mind that one mistake won’t lead to a legal battle between you.
This reassurance can help maintain a positive working relationship, even if something does go wrong.
Another Real-World Example
A contractor accidentally dropped a steel beam, damaging both the newly built extension and part of the existing property. Because the policy was in joint names, the insurer paid out for the repairs to both without blaming the contractor or delaying the project.
The Cost of Joint Names Insurance
Adding contractors as joint names on your Building Project policy typically doesn’t add anything to the premium – so compared to the potential cost of delays, it’s a great cover enhancement.
Your insurance advisor will ensure the policy wording is correct and that all relevant parties are listed to avoid gaps in cover.
Key Takeaways
- Joint names insurance covers both you and your contractor(s) under one policy.
- It avoids disputes over fault and speeds up claims.
- Many building contracts and lenders require it.
- It can protect working relationships and keep your project on track.
Need expert help arranging joint names cover for your project?
Call 01825 745 410 – every call is answered by a qualified advisor.
Email enquiries@jctinsurance.com for a fast, personal response.
Next article in the series: The Hidden Risks Next Door – Party Walls & Non-Negligence Cover