Civil Engineering Reference
In-Depth Information
Particulars so specify and it covers the potential liability of the Employer to third par-
ties which would not normally be met by the Contractor's public liability insurance
nor covered by their indemnity under clause 6.2.
This insurance relates to damage to property, other than the Works, and to Site
Materials, caused by certain specified risks, namely collapse; subsidence; heave; vibra-
tion; weakening or removal of support; or lowering of ground water arising out of, or
in the course of carrying out, the Works. his cover is most commonly required when
there is neighbouring property susceptible to damage by any of these risks.
Under clause 6.5.1 fault does not need to be established, but there are a num-
ber of exceptions which reduce considerably the scope of this insurance cover,
namely:
•
injury or damage for which the Contractor is liable under clause 6.2 (which should
be insured under clause 6.4.1);
•
injury or damage attributable to errors or omissions in the designing of the works
(which, where either the SBC/DB or the SBC with Contractor's Designed Portion
is used, should be covered by professional indemnity insurance under clause 6.12
of the SBC/DB or the SBC);
•
injury or damage which can reasonably be foreseen to be inevitable, having regard
to the nature of the work to be executed or the manner of its execution;
•
injury or damage which is the responsibility of the Employer to insure where Insur-
ance Option C (insurance of existing structures) applies;
•
injury or damage arising from war risks or the Excepted Risks (see Section 14.2.9);
•
injury or damage directly or indirectly caused by or arising out of pollution or con-
tamination during the period of insurance, save in respect of a sudden identifiable,
unintended and unexpected incident; and
•
injuryordamagewhichresultsin costsorexpensesbeingincurredbytheEmployer
or any other sums being payable by the Employer in respect of damages for breach
ofcontract,savetotheextentwhichtheywouldhaveattachedintheabsenceofany
contract.
14.2.4 Insurance of the Works
he SBC and the SBC/DB provide three options ('Insurance Options') for insuring the
Works. A choice must be made in the Contract Particulars, while certain provisions
apply regardless of which option is selected. Under both forms, the Insurance Options
aresetoutinSchedulePart3.
The contract calls for a Joint Names Policy for All Risks Insurance. Both terms are
deinedinclause6.8oftheSBCandtheSBC/DB.Wherethepolicyisinjointnames,
both the Contractor and the Employer are to be named as composite insured and
either of them may make a claim under the policy in its own name. he definition also
makes it clear that the policy must provide that the insurer has no right of subrogation
against a named insured (see Section 14.1.5).
The All Risks Insurance which either the Contractor or Employer, as the case may
be, is obliged to take out should provide cover against any physical loss or damage to
