Development Checklist No 8 - Insurances (Update 1 - 19 October 2011)

Check 8.1:  Identify the risks that the project faces and how they should be eliminated or 
mitigated by management policy or insurance.

Check 8.2: Review the need for insurances, particularly statutory and contractural, and develop management action policies for meeting risks . 

Check 8.3: Identify statutory insurances and ensure compliance by each party concerned and that the cover is adequate.

Check 8.4: Identify contractural insurances and ensure each party complies with the terms and conditiona and has adequate cover.

Check 8.5: Review Checklist 10 for the exemption from community infrastructure levy (CIL) where on a rebuild after damage or destruction there is a modest increase in size of a building.

Typical insurances found in development works include:

Statutory Insurances

       General:

• Employer's Liability:
• Motoring:

        Property:

• Airports: Owners or operators require cover to protect the customers, staff and third parties against loss or injury which is due to a failure in the owner’s or operator’s duty of care.
• Horse Riding Establishment: A duty to insure under the Riding Establishments Acts 1964 s 1 (4A), is required of the licence holder to cover customers, eg hirers or persons learning, and third parties (suffering injury from the proprietor or a customer).
• Nuclear Installations - Nuclear Installations Act 1965 s19 requires insurance or compensation cover of the licence holder of a nuclear installation, eg a power station generating electricity by a nuclear reactor.

Contractual:

• Land and buildings etc, exchange of contracts: The purchaser of land and buildings is advised to insure from the date of contract.
• Goods:
• Professional services:
• Trade services: Contacts for demolition, building, fencing, security, etc works will normally cover such matters as contractor's all risks, public liability, etc.

Other:

• Keyman:
• Membership of a profession or trade body: Professional bodies such as the RIBA, RICSand the RTPI require its members to carry cover for professional indemnity insurance (PII).