Insurance is only one part of managing construction risk.

Clear contracts, reliable records and consistent project procedures can help reduce disputes and support the response when a problem occurs.

Practical measures can include:

• Using written contracts with clients, subcontractors, consultants and suppliers
• Clearly documenting project scopes and responsibilities
• Confirming responsibility for design, approvals and certification
• Documenting variations and instructions
• Keeping project correspondence, photographs and site records
• Checking subcontractor licences and qualifications
• Obtaining relevant Certificates of Currency
• Maintaining appropriate site and safety procedures
• Protecting sites, materials, tools and equipment
• Monitoring project and contract values
• Notifying insurers of materially changed activities
• Reporting incidents and potential claims promptly
• Reviewing insurance requirements before signing contracts
• Maintaining quality-control and handover procedures

What about subcontractors? #

A subcontractor having their own insurance does not necessarily remove the builder’s exposure.

The builder may still be pursued as:

• Head contractor
• Contracting party
• Project manager
• Party responsible for the overall works

Contracts can also impose obligations that extend beyond the protection available under an insurance policy.

Webber Insurance can review insurance clauses from an insurance broking perspective. Where appropriate, particular clauses can also be referred to an external legal provider for consideration.

You can also read more about engaging subcontractors.

Contact our team when the business takes on materially different activities or larger projects.