Employer controlled project insurance

Employer controlled project insurance offers a solution that puts control back in the hands of the client, allowing for tailored coverage that minimises risk and simplifies claims. At Griffiths & Armour, we are dedicated to helping you safeguard your financial interests a every stage of construction.

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Key benefits of employer controlled project insurance

Reduced costs by eliminating waste and duplicate coverage
Enhanced control with one policy that covers all project participants
Claims settled directly with the employer, ensuring faster payouts
Minimised disputes between contractors, sub-contractors, and other parties
Broader coverage options such as Consequential Loss, not typically available under contractor-controlled policies

Why choose employer controlled insurance?

Traditional contractor-controlled insurance leaves clients vulnerable to:

Fragmented coverage that protects individual firms rather than the project as a whole
A blame-driven culture that encourages disputes and slows down claims
Increased legal and forensic costs; in fact 80% of construction insurance claims costs go to these areas, not to compensation

Employer Controlled insurance, by contrast, provides unified protection, minimising waste and reducing overall project costs.

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The client's position & risk transfer

In construction, risk transfer is essential. Rather than relying on contractors to manage risks, employer controlled project insurance enables you, as the client, to control coverage and protect your financial interests. Griffiths & Armour works directly with your legal team to ensure clauses in contracts align with your protection needs.

Griffiths & Armour’s role: We help you assess risks, review contracts, and implement insurance solutions that align with your project’s goals.

Premiums and cost management

With employer controlled project insurance, you pay directly for a policy designed to meet your needs. In contractor-controlled arrangements, insurance costs are usually embedded in the contract price, meaning you have less control over what you’re actually paying for.

Griffiths & Armour’s role: We assist in negotiating reductions with contractors, ensuring they exclude their own insurance costs from bids, which reduces your overall project cost.

Coverage options under employer controlled insurance

Construction All Risks insurance

This coverage protects against loss or damage to all contract works, including civil, mechanical, and electrical components. It also covers temporary works and the cost of professional fees related to any claims. Additionally, the policy can include coverage for increased costs due to delays from insured events, ensuring the project stays on track and budget despite unexpected setbacks.

Third-Party Liability insurance

This insurance provides protection for legal liabilities arising from injury, illness, or death of third parties, as well as damage to third-party property. It ensures that any legal or compensation costs related to these incidents are covered, safeguarding the project and its stakeholders from potential financial and legal burdens.

Delay in Completion/Consequential Losses

This coverage option is essential for protecting revenue streams and covering additional financial losses caused by project delays due to insured events. It can include protection for anticipated income, rent, or profit that would have been earned had the project proceeded on schedule, helping to mitigate the financial impact of delays on the overall project.

Latent Defects insurance

Covering structural defects that may not be immediately visible, this insurance provides peace of mind long after project completion. Latent Defects Insurance ensures access to funds for repairs without the need to prove negligence, allowing the client to address issues swiftly and efficiently. This coverage can last up to 12 years, offering extended protection for the project’s structural integrity.

Additional considerations and specialist coverage options

Depending on your project, additional coverage can be arranged:

Environmental Liability: Covers pollution and cleanup responsibilities
Marine & Marine Consequential Loss: Protects items during transport to the construction site, critical for items with long lead times
Directors & Officers Liability: Provides personal liability coverage for project stakeholders
Property Damage and Business Interruption: Offers coverage for the finished building and business continuity after project completion
Legal Indemnity: Protects against legal risks such as rights of light and third-party claims

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Griffiths & Armour’s role as project insurance broker

We support your project through four essential phases:

1. Period to tender
• Conduct risk assessments and contract reviews
• Draft and negotiate insurance clauses
• Obtain competitive terms and customise policy wording

2. Pre-construction phase
• Coordinate with stakeholders and help negotiate contractor insurance rebates
• Arrange placement of the agreed insurance program and introduce the project team

3. Construction phase
• Manage claims, conduct regular reviews, and proactively administer the insurance program

4. Post-construction phase
• Administer policies during the defects liability period and manage claims for up to 12 years (Latent Defects)