Property Developers Insurance from £30.00/month

What does property developers insurance cover?

Property developers insurance is a bundled programme covering a live scheme through construction and beyond completion. Cover typically includes contract works (contractors all risks), JCT-compliant public liability, JCT 6.5.1 (now 21.2.1) non-negligence cover for adjoining-owner damage, employers' liability for direct labour, plant and tools, professional indemnity where you procure design-and-build, and 10-year latent-defects / structural warranty for buyer protection at handover.

Contract works (contractors all risks)

Contract works covers the full reinstatement value of the development during construction — permanent works, temporary works, materials on site and (subject to wording) materials in transit and off-site storage. Cover responds for fire, theft, malicious damage, escape of water, storm and accidental damage. On JCT contracts the policy is usually written in Joint Names (Employer / Contractor / Funder) and the insurer's interest is noted to the funder.

JCT 21.2.1 non-negligence cover

JCT clause 21.2.1 (formerly 6.5.1) requires the Employer to maintain insurance covering damage to adjoining property caused by collapse, subsidence, heave, vibration, weakening or removal of support — even where there is no contractor negligence. It's a contractual requirement on most commercial JCT schemes and a frequent gap on smaller residential conversions. Premiums are rated on adjoining-property values, ground conditions and method of construction.

Public, employers' liability, plant and tools

Public liability (£5m–£10m, sometimes £25m on funded schemes) covers third-party injury and property damage from site activities. Employers' liability (£10m statutory) covers direct labour and labour-only sub-contractors working under your direction — including the CIS-paid "self-employed" tradespeople the HSE treats as your employees. Plant, tools and hired-in plant covers excavators, hoists, generators and tower cranes (own or hired) against damage, theft and continuing hire charges.

Professional indemnity and latent-defects warranty

Professional indemnity is required where you procure design-and-build or take on any design responsibility — covering allegations of negligent design, specification, supervision or fitness-for-purpose. 10-year structural warranty / latent-defects insurance (NHBC, LABC, Premier Guarantee, BLP and similar markets) is sold to buyers at handover and required by virtually all mortgage lenders for new builds and conversions; we arrange both NHBC-equivalent warranties and policy-based latent-defects cover.

Common questions about property developers insurance

What's the difference between contract works and building warranty?

Contract works covers the development during construction against fire, theft and damage. A building warranty covers structural defects after completion for up to 10 years and is what mortgage lenders and buyers actually require at handover. You need both.

Do I need JCT 21.2.1 cover on a residential conversion?

If the contract references JCT and the scheme touches an adjoining structure (party wall, terraced house, basement extension, conversion of a building attached to neighbours), yes. It's the cover that responds when an adjoining-owner suffers settlement or cracking damage without anyone being demonstrably negligent.

Does professional indemnity apply to me as a developer?

If you procure design-and-build, take design responsibility, or specify materials and methods yourself, yes. PI is increasingly required by funders and is essential at sale because conveyancing solicitors now routinely ask for evidence.

Can a single policy cover multiple sites?

Yes. Annual developer programmes can cover a rolling portfolio of sites declared as they start, with a single PL/EL tower and a master contract works schedule — usually more cost-effective than per-site policies for developers running 3+ schemes a year.

For a developer quote — single scheme or rolling programme — call 020 8908 2426, message WhatsApp 07954 331362, or request a callback.