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WHAT YOUR CONSTRUCTION POLICY MAY NOT COVER
Avoid surprises by knowing what your policy excludes
Construction insurance provides vital protection, but all policies contain exclusions, restrictions and conditions that may affect your cover. Understanding these helps you avoid gaps and ensure compliance with insurer requirements.
Typical Construction Policy Exclusions
Common exclusions found across Contractors’ All Risks, Public Liability and Employers’ Liability policies.
- Defective workmanship, design or specification (unless specific cover is purchased)
- Wear and tear, gradual damage or poor maintenance
- Damage to existing structures unless specifically included
- Losses caused by non-compliance with conditions or warranties
- Damage due to faulty materials or incorrect installation
- Penalties, fines or contractual liabilities not arising from insured damage
- Electrical or mechanical breakdown of plant (unless plant cover is added)
- Losses outside the territorial limits or work outside the allowed height/depth limits
Conditions & Warranties That Commonly Affect Cover
Common Policy Conditions
- Minimum site-security requirements (fencing, CCTV, locked containers)
- Hot-works permits and fire-watch procedures
- Storage conditions for flammables or hazardous materials
- Weather precautions such as sheeting and water diversion
- Disclosure of major project changes or contract variations
- Accurate declarations of wage roll, turnover and subcontractor usage
How These Affect Claims
- Failure to comply can void or reduce a claim
- Incorrect risk information can invalidate a policy
- Unnotified changes can breach terms and conditions
- Claims may be declined where precautions were not taken
- Certain works might fall outside height/depth/usage limits
Why Understanding Exclusions Matters - and Why Insure24 Helps
- We explain exactly what your policy includes - and excludes
- Clear guidance on warranties, security requirements and compliance
- Help structuring wider programmes to avoid cover gaps
- Advice on specialist extensions such as existing structures or design cover
- Support in choosing the right insurer for your project risk profile
- Claims support if the unexpected happens on site
“Insure24 helped us understand the exclusions on our CAR and Liability policies. It meant we could put additional cover in place and avoid a serious gap in protection.”
Construction Contractor, UKFREQUENTLY ASKED QUESTIONS
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Does construction insurance cover defective workmanship?
Usually not. Most policies exclude rectifying faulty workmanship or materials, although resulting damage may be covered. Specialist “defects” cover can sometimes be added.
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Are existing structures covered automatically?
No - existing structures are normally excluded unless the policy specifically includes them.
This is important for refurbishments, conversions and extension work.
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What happens if we don’t meet a policy warranty?
A breach of warranty can allow the insurer to reject a claim - even if the breach is unrelated.
Insure24 ensures you understand every warranty and how to comply.
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Does Public Liability cover contractual penalties or LDs?
No. Public Liability covers injury and property damage - not pure financial loss.
LDs and penalties generally require specialised project delay or DSU insurance.
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Is wear and tear or gradual deterioration covered?
No. Insurance responds to sudden, unforeseen events - not deterioration over time.
Maintenance issues are excluded from nearly all construction policies.
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Does construction insurance cover defective workmanship?
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Are existing structures covered automatically?
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What happens if we don’t meet a policy warranty?
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Does Public Liability cover contractual penalties or LDs?
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Is wear and tear or gradual deterioration covered?
Related Covers
Exclusions pages are strongest when they route users into the policy sections, extensions and project risks that usually create coverage gaps. These links keep wording-focused construction visitors on related pages.