ABSTRACT
Construction operations can be hazardous, and it is therefore important that liability for losses resulting from personal injury or damage to any property or to the works is clearly allocated to one party or the other, and that the liability is backed up by insurance. In addition to the requirement for insurance against claims arising in respect of persons and property, the contract contains alternative provisions for insurance of the works. If the insurers named in the joint names policy decide to withdraw this cover and notify either party, that party must immediately notify the other that terrorism cover has ceased. The contract administrator has a duty to explain the provisions of the contract to the employer. The choice of the appropriate option for insuring ‘the Works’ is particularly important and advice must be given to the employer concerning the consequences.
