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JCT Non-Negligence Insurance

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Flexible, Affordable, Non-Negligence JCT Insurance

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What Is JCT Non-Negligence Insurance?

JCT non-negligence insurance, clause 6.5.1 or 21.2.1 insurance, protects property owners and contractors against damage to neighbouring properties while work is being carried out when no negligence can be proven.  While public liability insurance can cover damage, it requires proof of fault, which JCT non-negligence insurance doesn’t.  It is often required under Joint Contracts Tribunal (JCT) building contracts, particularly on projects in built-up urban areas where excavation, piling or demolition work could affect adjacent buildings.

What Can JCT Non-Negligence Insurance Cover?

It can cover a wide range of claims arising from building works on nearby properties.  The most common risks are:

  • Damage to neighbouring buildings caused by excavation, piling, or deep digging
  • Subsidence affecting adjoining properties
  • Heave following excavation work
  • Landslip
  • Ground movement
  • Weakening of the foundations of a neighbouring property
  • Collapse of neighbouring structures including walls, outbuildings, garages and extensions under third-party conditions
  • Damage caused by vibration from construction work
  • Underpinning-related damage
  • The removal of structural support
  • Dewatering or lowering of the water table
  • Settlement caused by nearby construction
  • Damage arising from demolition works
  • Damage resulting from basement excavations 


The key feature is that the damage occurs without negligence on the part of the contractor.

What Isn’t Covered?

 
  • Damage caused by negligence – negligent damage is covered by public liability insurance and includes poor workmanship, unsafe excavations, failure to follow engineering advice, and incorrect installation of temporary works
  • Injury or death – it only covers third-party property damage
  • Damage to the works being built, site equipment or materials – it only covers third-party property damage
  • Defective workmanship – faulty foundations, poor brickwork, defective waterproofing, etc.
  • Known existing damage
  • Contractual penalties – losses incurred owing to delays, contract disputes, late completion, lost profits
  • Pure financial losses – it only covers damage to a third-party property; it won’t cover loss of rent, business interruption or loss of contracts
  • Environmental pollution or damage
  • Damage outside the insured risks – if a policy specifies cover for collapse, heave, subsidence, and vibration, then they are the only things that will be covered
  • Damage outside the policy period – so only incidents that occur while construction is underway
  • Damage to contractor-owned property – such as tools, plant, and scaffolding
  • Wear and tear
  • Professional errors – design mistakes by architects or engineers are generally excluded as these are covered by professional indemnity insurance
  • Asbestos and hazardous materials
  • Deliberate or criminal acts resulting from fraud, wilful misconduct/damage 
 

Who Needs JCT Non-Negligence Cover?

It’s usually taken out by people who are carrying out construction work that could damage neighbouring buildings, even where no negligence has occurred. Policyholders include:

  • Property developers – as they often undertake projects in built-up areas where neighbouring properties could be affected
  • Commercial property owners – commissioning building work on offices, retail premises, warehouses or industrial units 
  • Homeowners – undertaking major structural work, especially if their property has party walls or shared foundations
  • Main contractors – many JCT contracts require the contractor to arrange insurance. Contractors working on higher-risk projects often arrange cover in joint names with the employer
  • Building contractors – carrying out work involving significant ground movement should consider getting cover
  • Architects and project managers – they don’t usually purchase cover themselves, but they often recommend or specify it during project planning where they identify a risk to neighbouring property

Which Projects Need JCT Non-Negligence Insurance?

It’s recommended for projects involving:

  • Deep excavations  
  • Basement construction
  • Piling
  • Underpinning
  • Demolition
  • Ground stabilisation
  • Retaining wall construction
  • Structural alterations
  • Work affecting party walls
  • Projects adjacent to historic or listed buildings 

Case Study: How Fortify Insurance Helped Protect a Peterborough Landlord With JCT Non-Negligence Insurance

Client: A residential landlord in Peterborough

 
The Challenge

A landlord insurance client of ours purchased a large Victorian house in Broadway with plans to convert it into four apartments. The project involved:

  • Excavating a new drainage system
  • Removing internal load-bearing walls
  • Installing steel beams
  • Underpinning part of the existing structure
  • Building a rear extension 


The property was semi-detached, with other properties nearby.  Before work commenced, a structural engineer identified that excavation and underpinning works could potentially affect the adjoining property.

Because the project was being undertaken under a JCT building contract, the developer’s solicitor recommended obtaining JCT non-negligence insurance to protect against any claims arising from specified construction risks where negligence could not be proved.  

 
Our Solution

After reviewing the construction drawings, engineers’ reports and project timeline, we arranged a tailored package of cover that included:

  • JCT non-negligence insurance
  • Contract works insurance  
  • Public liability insurance
  • Employers’ liability insurance 


We also recommended:

  • A pre-construction condition survey of neighbouring properties
  • Regular structural monitoring during excavation
  • Compliance with the engineer’s method statement 


These measures helped demonstrate that the contractor was following recognised industry standards.

 

The Problem

Three weeks into the excavation works, the owner of the adjoining property noticed:

  • Cracks appearing in internal plasterwork
  • A sticking rear door
  • Minor movement around a bay windowsill


A structural engineer confirmed that the movement had most likely resulted from temporary ground settlement caused by the excavations next door.  Crucially, the contractor had followed the engineer’s design, Building Control inspections found no evidence of poor workmanship, and there was no negligence on the part of the contractor or developer.

 
The Claim

The neighbouring homeowner submitted a claim for:

  • Structural investigations
  • Crack repairs
  • Replastering
  • Redecoration
  • Monitoring of the affected wall 


The claim came to just over £38,000.

Because the damage resulted from one of the specified construction risks covered under the JCT non-negligence policy, and as no negligence could be established, the insurer accepted the claim and paid in full.  The policy covered the cost of repairing the property, allowing the landlord’s conversion project to continue with minimal disruption.

 
The Outcome

Thanks to the cover we arranged:

  • The neighbouring property was professionally repaired
  • The landlord avoided a £38,000 bill
  • The development remained on schedule
  • Relationships with neighbouring homeowners were preserved
  • The flats were completed and successfully let to tenants


‘I always recommend Anton to my landlords for their insurance needs, and the feedback is consistently excellent. His communication is outstanding, and he always goes the extra mile to secure the best possible deal’ Lucy Lemon, 5-Star Google Review

What Policy Extensions Are There?

It’s a basic policy, and there are several policy extensions on offer:

  • Increased limits of indemnity – increasing the amount of cover. Typical limits range from £250,000 to £10 million or more, depending on the project
  • Defects liability period extension – some insurers can extend cover beyond completion to include the contractual defects liability or maintenance period
  • Existing structure extension – to provide cover not only for neighbouring properties but also for damage to the existing building
  • Joint names cover – so it’s arranged in the names of the property owner, the employer, and the main contractor
  • Extended construction period – so if a project overruns, cover remains in force until completion
  • Higher-risk groundworks cover – projects involving extensive groundworks often require enhanced underwriting or endorsements
  • Multiple property development extension – developers working across several adjoining buildings or phases may be able to insure multiple plots or buildings under a single project policy
  • Party wall project extension – while JCT non-negligence insurance is often referred to as “party wall insurance,” some insurers can enhance the policy for projects with particularly complex party wall risks
  • Higher territorial or contractual limits – for larger commercial developments, insurers may agree to higher contractual indemnity limits, larger project values, multiple contractors and longer contract durations 
 
Related Covers Often Arranged Alongside JCT Non-Negligence Insurance
Many brokers recommend arranging a broader construction insurance package, including:

  • Contractors’ all risks insurance
  • Public liability insurance
  • Employers’ liability insurance
  • Professional indemnity insurance
  • Existing structures insurance
  • Plant insurance
  • Contract works insurance
  • Legal expenses insurance 

How Much Does JCT Non-Negligence Insurance Cost?

JCT non-negligence insurance typically costs from £500 to £750+ for small, low-risk projects and can rise to tens of thousands for large, high-risk, complex developments.

 
How Can I Get A JCT Non-Negligence Insurance Quote?

Getting a quote is easy. You can call us on 01733 301520 or request your JCT non-negligence insurance quote today.  Being independent, we can compare the market to find you the cover you’ll need for a premium you’ll like.

JCT Non-Negligence Insurance

Frequently Asked Questions

JCT non-negligence insurance, or clause 6.5.1 or 21.2.1 insurance, protects property owners and contractors against damage to neighbouring properties when work is being carried out when no negligence can be proven.  While public liability insurance can cover damage, it requires proof of fault, which JCT non-negligence insurance doesn’t.  It is often required under Joint Contracts Tribunal (JCT) building contracts, particularly on projects in built-up urban areas where excavation, piling or demolition work could affect adjacent buildings

Cover can include claims arising from things like subsidence, heave, landslip, ground movement, vibration, piling operations, demolition, settlement, and basement excavations

JCT Clause 6.5.1 Insurance (6.5.1 Insurance) is just the former name for JCT non-negligence insurance

Property developers, homeowners, main contractors, house builders, commercial developers, and local authorities

No, it’s not required by law, but it is frequently a contractual requirement under JCT building contracts and may be requested by project funders, developers or employers

As it covers claims arising from negligence

It is commonly taken out for basement construction, excavation work, demolition, piling, underpinning, structural alterations, commercial developments, and extensions in built-up areas

Yes, its main purpose is to protect against claims for damage to neighbouring properties caused by the insured construction works where negligence cannot be proven

Typical exclusions include poor workmanship, faulty design, negligence, damage to the contract works, deliberate acts, existing defects, and contractual disputes

It depends on the JCT contract. It may be arranged by the employer (property owner), the contractor or another party identified within the contract documents

For the duration of the construction project.  Some policies may also include a maintenance period if required

Yes

Yes, basement excavations are among the highest-risk construction activities and are a common reason why employers or contractors arrange cover

Yes, homeowners undertaking major extensions, basement excavations or structural alterations near neighbouring properties may need it.  It may be required under the building contract or recommended by their broker or contractor

Yes, if vibration from piling or other construction activities causes damage to neighbouring property without negligence

Typically, insurers will ask for the project’s address, contract value, description of the works, construction methods, excavation depth, notes on any nearby buildings, ground investigation reports, structural engineer’s details, the project’s duration, and the contractor’s experience

It typically costs from £500 to £750+ for small, low-risk projects and can rise to tens of thousands for large, high-risk, complex developments

Yes, it can cover claims involving neighbouring listed buildings, although insurers may require additional information because historic properties can be far more expensive to repair

Yes, it is widely used on office developments, retail projects, industrial buildings, hotels, schools, hospitals and mixed-use developments where nearby properties could be affected

A specialist insurance broker can assess whether the cover is required, explain the contract requirements, obtain quotations from multiple insurers, recommend appropriate indemnity limits, help avoid gaps in cover and offer youthe support you need to make a claim.  If you’d like some advice, you can call us on 01733 301520 or request your JCT non-negligence insurance quote today.  Being independent, we can compare the market to find you the cover you’ll need for a premium you’ll like

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