Is flood the new fire?

Is flood the new fire?

The high visual impact of fire losses on Construction Projects are always stark, and recent examples of Glasgow Art School and Mandarin Oriental Hotel, London have reinforced that.

Yet damage losses caused by water escape, particularly in the latter part of the build, can be just as catastrophic both in terms of the physical works and the resultant consequential delay.

An image of a wet floor

Following in the footsteps of fire prevention guidelines laid down in the Joint Code of Practice, construction insurers are now starting to implement similar ‘rules’ to mitigate Water Damage to a project. Failure to follow these requirements could also lead to more restrictive policy terms and conditions, should they not be satisfied with the projects water damage mitigation measures, be it via premium increases, higher deductibles, or at worst, removing cover.

Graphic of a crane with the word construction beneath it

Your insurable exposures following a water escape could be:

  • Property Damage.
  • Financial Consequences – Contractual LADs will not normally apply in the event of a water damage event resulting in a delay event, potentially leading to significant financial issues to the Project e.g. Debt Service Costs, Loss of Rental Income etc.
  • Fault Responsibility – typical water damage losses are as a result of defective workmanship which can be any number of parties onsite. Proving negligence can be a costly and lengthy matter.
  • Site Shutdown – Potential risk of the site being shutdown due to the mix of water and electrics leading to further delays.

Griffiths & Armour’s Project Specific Insurance proposition can provide key water risk management advice to avoid such matters, whilst also providing comprehensive Contractors All Risks, Delay in Completion and Third Party Liability terms to cover the project.

If you would like to discuss your project further please do not hesitate to contact us:

  Jack Wolstencroft   Roger Moore
  Jack Wolstencroft
0151 600 2132
[email protected]
Connect on LinkedIn
  Roger Moore
0151 600 2120
[email protected]
Connect on LinkedIn

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