Having developer and subcontractor insurance and meeting your obligations aren't the same thing.
Ask most subcontractors and developers whether they have insurance and the answer is yes. Ask whether it meets the specific requirements of the contracts they're working under and it gets less certain.
JCT and NEC contracts contain detailed insurance clauses - minimum liability limits, required policy types, obligations that flow down the supply chain. Not knowing what those requirements are, or carrying cover that falls short, creates exposure that sits quietly until a claim forces it into the open.
What subcontractors need to know:
Public liability limits must match your main contractor's. If you hold £1 million and your main contractor holds £5 million, and your work causes damage beyond your limit, they will pursue recovery from you for the shortfall. Check the minimum limits specified in your contracts and make sure your cover meets them.
Employers' liability applies more broadly than many realise. Labour-only subcontractors - those working under your direction, using your materials - are treated as your employees for insurance purposes. If they're injured on site, the claim falls to your EL policy. Failing to declare them correctly can result in a claim being reduced or declined.
Professional indemnity is increasingly a condition of appointment. Any design element in your scope of work creates PI exposure - design-and-build packages, M&E specification, earthworks design. Many contracts now require PI cover before you start on site. Without it you may be in breach before a tool has been lifted.
What developers need to know:
Contract works cover needs to reflect current build costs. This is the most common gap we find with developer clients. Material costs have risen significantly - a sum insured set two years ago may leave you substantially exposed following a fire, flood, or major site incident.
Latent defects insurance is required by most funders and mortgage lenders. It provides protection against structural issues emerging after practical completion - typically for ten to twelve years - and unlike PI, doesn't require proof of negligence to respond. Without it, a completed development can be unmortgageable or unsaleable.
Directors' and officers' insurance is no longer optional. Under increasing scrutiny from the Building Safety Act and growing regulatory accountability in the built environment, D&O cover protects the individuals behind the business - not just the business itself.
The JCT 2024 transition:
Worth noting for 2026: the JCT 2016 suite was formally withdrawn from sale on 31 March 2026. All new procurement activity now falls under JCT 2024, which contains updated insurance and risk allocation provisions. If you're moving onto new projects this year, now is the right time to check your programme is aligned to the new contract forms.
We take the time to understand what you actually need:
At Readhunt, we don't hand over a policy and move on. We work with subcontractors and developers to understand the contracts they operate under and the obligations those contracts carry - then build an insurance programme that genuinely meets them.
It's a conversation worth having before a claim makes it necessary.
Call 01709 278178 or email us insurance@readhunt.co.uk