Unexpected archaeological discovery insurance

The discovery of archaeological remains during the course of works can be a disaster for a developer and can lead to long and costly delays, conflicts with archaeologists and planners, cancellation and heavy financial loss. Developers should anticipate these risks and insure themselves against such consequences.

This country is extremely rich in archaeological remains still undiscovered under the soil. This evidence of the past is regarded as a priceless and irreplaceable national asset and legislation serves to protect it. The main instrument which governs the course of a developer's approach to archaeology is the Government circular Planning Policy Guide 16: Archaeology and Planning (PPG16).

The possibility of an unexpected find is an ever-present consequence of the rich and diverse nature of the archaeology itself and is a situation anticipated by PPG16 in paragraph 31:

"Nevertheless and in spite of the best pre-planning application research, there may be occasions when the presence of archaeological remains only become apparent once the development has commenced. Developers may wish to consider insuring themselves against the risk of a substantial loss while safeguarding the interest of historic remains unexpectedly discovered on site. Conflicts that may otherwise arise between developers and archaeologists may not be easy to solve"

The consequences of ignoring this advice can be serious. Archaeological costs alone can be very significant and developers can also be saddled with huge delay costs, the cancellation or redesign of a scheme and the wiping out of any profit anticipated for the development.

Summary of Cover

Adam Brothers Contingency can arrange effective and comprehensive coverage against unforeseen costs arising from an unexpected archaeological discovery. These costs can arise in any of four major ways:

• Delay Costs
  Delay costs are defined as being additional costs incurred in relation to the delayed completion of the development, which the insured becomes legally liable to pay. This is likely to be the most significant unexpected cost to the developer.
• Archaeological Costs
  Archaeological costs are defined as being all costs incurred, with the prior written consent of underwriters, in undertaking a scheme of archaeological work, including fieldwork, post-excavation work and preparation of results to an agreed standard for publication, which is required by the planning authority or other statutory or curatorial organisation, to the standard of best recognised professional practice.
• Cancellation Costs
  Cancellation costs are defined as being costs incurred as a result of the necessary cancellation of all or part of a project because of revocation of planning consent or the designation of unexpectedly discovered remains as a Scheduled Ancient Monument.
• Redesign Costs
  Redesign costs are defined as costs necessarily incurred by the developer as a result of a requirement to revise the layout or constructional details of a project in order to ensure the preservation of unexpectedly discovered archaeological remains.

It is also possible to cover any other provable loss that may be incurred as a result of an unexpected discovery, such as loss of profits or decrease in value.

Adam Brothers Contingency is part of Griffiths & Armour Global Risks.