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New Insurance Model Clauses defined by the Building Safety Fund

08 September 2022

New insurance model clauses have been introduced for high rise building repairs funded by the building safety fund. New policy wording published by the International Underwriting Association (IUA) and the Department for Levelling Up, Housing and Communities is welcomed by industry.

This new policy wording addresses the issue of the difficulties in obtaining professional indemnity insurance cover for these works.

Quoting the IUA:

"Our new model clause sets out a number of key risk management processes that will ensure work being carried out is conducted within recognised industry standards. This will help improve accountability for safety measures and foster an investment in quality construction."

So what are the expected or required risk management processes?

  • The appointment of a qualified clerk of works.
  • A formal review of the design and delivery inspections of the project at key milestones by qualified individuals independent of the client's design team.
  • Insured to have a recognised quality management system.
  • All works are to be undertaken in accordance with good practice loss prevention works.
  • Site specific Risk Assessments and Method Statements (RAMS) are to be prepared for all works to be funded by the Building Safety Fund, prior to the commencement of any works. 
  • New materials are to meet relevant European classifications.

With all of the aforementioned points being reasonable, compliance should not be an issue, with the need for the independent reviewer being the main additional requirement.

The clauses still have exclusions such as liability for any indirect or consequential losses that form part of any claim, however this is a significant enabler to enable fuller participation of more of the construction supply chain in this sector.

For more information on how DWF can assist with your adjusting needs, visit our website DWF Adjusting | DWF Group.

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