Joint Contracts Tribunal Clause 21.2.1 Insurance (JCT Clause 21.2.1)

A JCT Clause 21.2.1 insurance policy provides cover against liability for losses and issues arising in connection with work involving excavation, piling, demolition underpinning etc. This policy will provide protection for any damage to adjacent or neighbouring property that occurs during the works being carried out. Damage could result from the following:

• Collapse
• Subsidence
• Weakening or removal of support
• Vibration
• Lowering of ground water

Contractors or sub-contractors will be covered under this cover type.

This type of damage may not necessarily be caused by negligent acts of the contractor and therefore would not be covered under any Public Liability insurance which is in place. JCT Clause 21.2.1 insurance is a clause that can be purchased as an addition to cover damage where there is no negligence by the party carrying out the works.

This clause is optional and will in most cases be requested to be put in place by the consulting surveyor or architect. The JCT Clause 21.2.1 stems from the Joint Contracts Tribunal standard building contracts.

The JCT Clause 21.2.1. policy will be between the contractor and the property owner. The cover will be arranged by the contractor, who will pay the premium and comply with the conditions contained within the policy. However, the policy is taken out with the intention of covering the property owner rather than the contractor.