CivilCovered

Tenders and contract awards · 4 min read

Insurance after winning a tender: what to prepare after a contract award

After you win a tender, read the contract’s insurance clauses and contract data and list each required cover, limit, excess, insured party, period and evidence deadline. Send those to your broker before you mobilise. Cover is not in place until the insurer has accepted the risk and confirmed it in writing, and insurers need time to assess the project, so start as soon as you have the award.

The steps to take after an award

  1. Obtain the full contract

    Read the contract conditions, contract data or particular conditions, and any special requirements, not only the tender notice.

  2. Find the insurance clauses

    Locate every clause and schedule that deals with insurance, indemnity, security and the contractor’s risks.

  3. Work out who must arrange each cover

    Contracts allocate responsibility differently. Do not assume. Note whether the contractor, the employer or both must insure each item.

  4. List what is required

    For each cover, record the minimum limit, the maximum excess allowed, the period, who must be insured and any wording the cover must contain.

  5. Note the evidence and deadlines

    Find out what proof is required, in what form, and when, for example before access to site or before the first payment.

  6. Note guarantees and other security

    If the contract requires a performance guarantee or an advance payment guarantee, check the wording and timing. These involve a separate assessment.

  7. Send the requirements to your broker

    Share the clauses and the project information. Our quote documents guide lists what helps.

  8. Review the quotation against the contract

    Check each term against your list before you accept.

  9. Confirm in writing

    Cover starts only when the insurer confirms it. Obtain written confirmation and a certificate or policy documents in the form the contract requires.

  10. Diarise changes

    Keep track of policy periods, extensions of time, variations to the contract value and guarantee expiry dates.

What a contract’s insurance clauses may ask for

Items to extract from the contract
ItemWhat to look for
Contract works insuranceWho arranges it, the sum insured basis, the period and any extension into the defects period. See Contractors All Risk.
Public liabilityMinimum limit of indemnity, whether per event or aggregate, and any required extensions. See public liability.
Plant and equipmentWhether the contractor must insure its own plant and any hired-in plant. See plant insurance.
Employees and statutory complianceReferences to workplace compensation and employers’ liability. See employers’ liability.
Professional servicesDesign responsibility and any professional indemnity requirement. See professional indemnity.
Insured partiesWhether the employer, main contractor or subcontractors must be named, and any waiver of recovery rights.
Excess and conditionsMaximum excess, notification duties and any required policy wording.
SubcontractorsWhether subcontractors must hold their own insurance, and how it is evidenced.
EvidenceCertificates, policy copies or broker letters, and when they are due.

The contract form matters

Different standard forms allocate insurance responsibilities in different ways, and each edition has its own wording. The contract data, particular conditions or contract schedule you signed are what count. Read our overviews of JBCC insurance requirements and of NEC, FIDIC and GCC insurance considerations, and then check your own contract.

Timing and common pitfalls

  • Starting too late. Insurers need time to assess the risk, and cover cannot be assumed to be available for every project.
  • Treating a quote request as cover. An enquiry is not cover. Wait for written confirmation.
  • Mismatched periods. If the programme extends, the policy period may need to follow.
  • Declaring the wrong value. Include variations and employer-supplied materials, or risk underinsurance.
  • Overlooking subcontractors. Check whether subcontractors’ insurance, or inclusion in yours, satisfies the contract.
  • Leaving guarantees to last. A guarantee provider’s assessment is separate and takes time. See construction guarantees.

What to send your broker

A starting pack

  • The contract conditions, contract data and insurance clauses.
  • A description of the work, the location and the programme.
  • The contract value, including variations and employer-supplied items.
  • Details of subcontractors and their insurance.
  • Plant to be used, owned or hired in.
  • Existing policies and expiry dates.
  • The evidence required and the deadline.

Common questions

How soon after an award should I contact a broker?

Immediately. Insurers need time to assess the project, and the contract may require evidence of insurance before you can access the site. Cover cannot be assumed to be available for every project.

What if the contract says the employer will insure the works?

Then you may not need to arrange contract works insurance yourself, but you will probably still need public liability and other covers. Read the clause and the contract data carefully, and ask us if you are unsure what remains for you to arrange.

Do I need to tell the insurer if the contract value changes?

Yes. Variations can change the sum insured, and an extension of time can change the period. Telling the insurer protects you from underinsurance and from a gap at the end of the policy period.

Just received a contract award?

Send us your contract’s insurance requirements. We will review them with you and help arrange suitable cover.

Send Your Contract Requirements

An enquiry does not put cover in place. Cover is subject to underwriting and policy terms.

Sources and further reading

Ready to talk through your cover?

Tell us about your work and your contract’s insurance requirements. We will review them and help arrange suitable cover.

Submitting an enquiry or requesting a quote does not put cover in place. Cover is subject to underwriting and policy terms.

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