Construction insurance claims: expert assessment across the whole project programme

A project rarely has just one insurance policy

On a typical scheme, the works may be insured under a contractors' all risks or builder's risk policy, while the main contractor and subcontractors carry their own public or general liability cover, architects and engineers hold professional indemnity insurance, and the owner may arrange property and loss of rent cover for completed sections. In the United States and Canada, large projects are sometimes placed under a wrap-up or owner-controlled insurance programme that combines several of these covers.

Each policy has its own triggers, exclusions, deductibles and claims team. The expert's first job is therefore mapping: identifying which policies could respond to a given loss, who holds them and in which order they apply.

Joint names, waivers and the contract

Building contracts such as JCT, NEC, FIDIC, AIA or Australian standard forms decide who must insure what, often in joint names, and whether insurers waive their right to recover from other project parties. A careful reading of these clauses frequently changes who should be claiming and against which policy.

The different experts involved

Insurers appoint loss adjusters to investigate, sometimes several on the same project if more than one policy is notified. Each reports to its own principal. Coverage counsel may also be involved where the wording is contested.

The insured party, whether owner, developer or contractor, can engage a loss assessor, public adjuster or construction claims consultant. Their role is to coordinate the claim across policies, prepare a consistent case on cause and quantum, and avoid the situation where each insurer argues that another one should pay. Courts and tribunals may also appoint or receive independent experts if the matter escalates.

How a programme-level claim is handled

The process follows the familiar notification, investigation and adjustment stages, but with more parties and longer timelines.

• Notify every potentially relevant insurer early, even if cover seems uncertain, to protect notification conditions.
• Collect the full insurance schedule for the project, including subcontractor certificates and any wrap-up documents.
• Establish a single, documented account of the event and its cause before positions harden.
• Allocate the loss between policies: physical damage, third-party liability, design error, delay.
• Negotiate with each insurer, recording agreements so that later payments are not reopened.

Documents an expert will ask for

Beyond the policies themselves, an adviser will want the building contract and amendments, the design responsibility matrix, the programme and progress reports, payment certificates, site diaries, meeting minutes, correspondence with designers and any reports from engineers or building control. These records show who did what, when, and under which obligations.

Recurring sources of dispute in construction insurance

Construction is one of the lines where coverage arguments are most frequent, largely because responsibility is shared and policies are designed to dovetail without overlapping.

• Design exclusions in contract works policies, and whether the designer's professional indemnity cover should respond instead.
• Whether a loss is a single occurrence or several, which affects deductibles and limits.
• Contribution between insurers when two policies cover the same loss, and the risk of delay while they argue.
• Late notification, especially where a problem developed gradually during construction.
• Recovery of consequential costs such as delay, liquidated damages and finance charges, which are rarely covered under standard material damage wordings.
• Subrogation: whether the insurer, after paying, can pursue another project party who believed they were protected.

Quantum in a multi-policy claim

Valuation must be split in a way each insurer can accept: physical reinstatement under the works policy, third-party property damage under liability cover, rectification of design error under professional indemnity, and delay under any delay in start-up section. A quantity surveyor or forensic accountant often supports the expert, particularly where costs have been absorbed into general project accounts.

A clear cost allocation reduces duplicated questions, prevents gaps where no policy pays, and speeds up interim payments that keep the project solvent.

Signs you need independent representation

Independent support is most valuable when more than one insurer is involved, when the loss threatens cash flow or the project programme, when insurers are disputing between themselves, or when the in-house team lacks claims experience. On smaller, single-policy matters, a capable broker may be enough.

Check the adviser's construction track record, licensing where it applies, professional indemnity insurance and independence from the insurers involved. If agreement cannot be reached, routes include internal complaints, ombudsman schemes for eligible smaller businesses, mediation, expert determination or adjudication under the contract, and ultimately arbitration or court.

In construction, the main risk is not a lack of cover but cover that is spread across many hands. An expert who maps every policy at the outset gives the injured party the best chance of a complete, timely settlement.