Demolition contractors insurance

Demolition work ranges from internal strip-outs to structural dismantling and removal next to occupied buildings. The method statement, neighbouring assets and material being removed can be more important than the project value alone.

What changes the insurance assessment

Manual versus mechanical methods, height, proximity to roads and adjoining property, temporary supports, asbestos and other hazardous materials, cutting or hot works, waste handling, subcontracting and any explosive work. Confirm licensed activities and project-specific controls.

Covers to discuss

Public/products liability, plant, contract works where appropriate, contractors pollution and PI if engineering or temporary works design is undertaken. Examine exclusions for demolition, collapse, vibration, asbestos and pollution.

Demolition scope to declare precisely

Break down internal strip-outs, partial demolition and complete structural removal by turnover and typical project value. Set out the method of dismantling, exclusion zones, adjacent occupancy, temporary supports, dust and waste controls, and who identifies hazardous material before work starts. If asbestos removal, explosive methods or hot works occur, state them expressly; a broad description such as demolition contractor may hide a material difference in exposure.

Ask for the policy treatment of collapse, vibration, neighbouring property and pollution. The structure being removed, third-party property and the contractor’s machinery are different insured interests. A works policy may also need review where the contractor is responsible for retained parts of a building.

Information to prepare

Provide a clear description and turnover split of your activities, locations, project values, required liability limits, licences, subcontractor arrangements, current policy and claims history. Include relevant contracts and methods for the higher-risk work. We will identify any further information underwriters need.

Questions contractors ask

“Will one demolition policy cover asbestos removal?” Only if that activity and its conditions are specifically accepted. “Is damage to the building being demolished insured?” That is a different question from third-party damage and needs a works/property review.

Public and products liability guide · Contract works · D&C PI

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