RICS launches construction insurance guidance

RICS has published Construction Insurance Guidance to help professionals understand the levels of insurance required when undertaking a construction project.

Construction insurance can be extremely complex. The insurance cover for any site will need to protect all parties against a range of possibilities that embrace material damage, consequential losses, third party liabilities stretching far into the future and even non-negligent liability.

To complicate things further the responsibility for arranging the insurances will usually rest with several different parties.

Construction Insurance aims to help project management surveyors, quantity surveyors, building surveyors and all other property professionals find their way through this maze.

Max Crofts, RICS president, said: “As a general rule, the earlier that decisions are made about insurance, the better it is. Expensive mistakes can be avoided; there is more time to find the best markets and less chance of duplicating covers or paying unnecessary premium.

“This guidance note is one of a series to be published in the next few months, covering various aspects of property and construction. It is a vital part of the RICS role in keeping members up to date with best practice.”