Building site accidents: how an independent claims expert handles the loss

Which policies respond when something goes wrong on site

Most building site incidents fall under a contract works policy, known in the UK, Ireland and Australia as contractors' all risks (CAR) and in North America as builder's risk. It covers physical loss or damage to the works in progress, materials stored on site and, depending on the wording, temporary works, plant and site huts.

Alongside it sit public liability or commercial general liability for injury and damage to third parties, employers' liability or workers' compensation for staff, and sometimes a separate plant or equipment policy. A single event, for example a crane failure that damages the structure, a neighbouring building and the crane itself, can therefore open three or four claims with different insurers, deductibles and adjusters.

Typical incidents and why they are hard to value

The usual triggers are storm and wind damage to partially enclosed structures, escape of water from temporary services, fire during hot works, theft and vandalism of materials, ground movement around excavations, and collapse of formwork or temporary propping.

• The works are incomplete, so the value of what was destroyed must be rebuilt from programmes, valuations and payment applications.
• Damage is often mixed with pre-existing defects or poor workmanship, which most contract works wordings exclude.
• The cost of clearing debris, re-securing the site and re-sequencing trades can be larger than the physical repair itself.

The insurer's loss adjuster and the policyholder's expert

Once the incident is notified, the insurer usually appoints a loss adjuster, often from a construction specialist team. That adjuster is paid by the insurer, investigates cause and quantum, and reports on whether the policy responds. Many are fair and technically strong, but their brief is to apply the policy as the insurer reads it.

The contractor, developer or employer can appoint its own representative: a loss assessor in the UK and Ireland, a public adjuster in the United States and Canada, or a claims preparation consultant in Australia. This person prepares and presents the claim on the insured's behalf and negotiates directly with the adjuster. On complex sites, both sides may also bring in forensic engineers, quantity surveyors or forensic accountants.

Step by step: from first call to agreed figure

Speed matters because the site keeps moving. Within the first hours the priority is safety and preventing further damage; within days, the record of what happened must be fixed before repairs erase it.

• Notify the broker and insurer promptly, as most policies set a short notification condition.
• Make the site safe and mitigate, keeping invoices for emergency works and temporary protection.
• Agree with the adjuster which damaged elements can be removed and which must be kept for inspection.
• Hold a joint site meeting to agree the cause, the extent of damage and the reinstatement method.
• Submit a priced claim with supporting records, then negotiate line by line until an adjustment is agreed.

Evidence that wins or loses a site claim

Site records are the backbone of the file. Dated photographs and drone footage, daily diaries, weather data, toolbox talk records, delivery notes, permits to work and CCTV establish what existed before the incident and what happened during it. Interim valuations and the bill of quantities show what the destroyed work was worth.

Where cause is disputed, physical evidence such as failed fixings, burnt cabling or a broken prop should be tagged, photographed and stored. Disposing of it too early is one of the most common ways a contractor weakens its own position.

Where disagreements with the insurer usually arise

Disputes rarely concern whether something happened; they concern what the policy pays for. A seasoned expert anticipates these arguments and builds the claim around them from day one.

• Defects exclusions: the insurer argues the loss stems from faulty design or workmanship, while the insured argues only the defective part is excluded and resulting damage is covered.
• Valuation basis: rates in the contract versus actual cost incurred, and whether overheads and profit are recoverable.
• Delay costs: extended preliminaries and acceleration measures are often outside the material damage cover unless a delay in start-up or advance loss of profits section applies.
• Deductibles: one event or several, especially after a storm that affects multiple parts of the site over a few days.
• Contractual allocation: under JCT, NEC or similar forms, who was required to insure the works and in whose name.

Quantifying the loss without losing the programme

Good quantum work separates direct reinstatement, debris removal, professional fees, temporary works and any covered extra costs, each supported by its own evidence. It also tracks costs in real time with dedicated cost codes, so that the claim is not rebuilt months later from incomplete accounts.

The expert should also check whether the policy limits, sub-limits for items such as debris removal or professional fees, and any average or underinsurance provisions could reduce the payment, and raise these points early rather than at settlement.

When it makes sense to bring in your own expert

Small, clearly covered losses can often be settled directly with the adjuster. An independent representative becomes worthwhile when the loss is large relative to the contract value, when cause or coverage is disputed, when several policies overlap, or when the site team simply does not have the time to assemble a claim while keeping the job on programme.

Check that the person is properly authorised where that is required: public adjusters are licensed state by state in the US and province by province in parts of Canada. In the UK, Ireland and Australia, ask about regulatory status, professional indemnity cover and construction experience. If a dispute cannot be resolved, ombudsman schemes such as the Financial Ombudsman Service, the Financial Services and Pensions Ombudsman or AFCA may be available to smaller businesses within their eligibility limits.

A building site claim is won on records kept in the first days and on a clear reading of the contract works wording. expertdassure.com recommends deciding early whether the stakes justify independent representation, before key evidence disappears under the next phase of work.