Dear Anne,

Absolutely, insurance is a crucial aspect to address in your contract to safeguard both parties involved.

Here’s a breakdown:

Contractor’s Insurance:

• Public Liability Insurance: The contractor should have public liability insurance to cover any accidental damage or injury to third parties while the construction is underway.

• Employer’s Liability Insurance: If the contractor has employees, employer’s liability insurance is essential to cover any injuries sustained by their workers during the project.

• Contractor’s All Risks Insurance: This insurance covers damage to the works, materials on-site, and tools and equipment. It’s a good idea to ensure the contractor has this coverage.

How to Stipulate in the Contract:

• Clear Documentation: The contract should explicitly state that the contractor is required to maintain the aforementioned insurances throughout the project.

• Verification of Insurance: Request copies of the contractor’s insurance certificates before the project begins. Ensure the coverage is adequate for the scale and nature of your project.

• Notification of Changes: The contract should stipulate that the contractor must notify you of any changes to their insurance status during the course of the project.

Now, about the homeowner insurance, while it’s not a direct part of the construction contract, it’s advisable to inform your insurance provider about the upcoming construction work. This helps ensure that your existing coverage remains intact, and they can guide you on any additional protections you may need during the construction phase.

Always consult with your legal and insurance professionals to tailor the insurance requirements in the contract to your specific project and circumstances. It’s an essential step in securing a smooth and protected construction process.

Best regards, Alma