Tunnelling and underground works insurance

Tunnelling and trenchless construction can involve ground movement, utility interfaces, underground plant, third-party structures and complex principal contracts. Method and location should be described precisely.

What changes the insurance assessment

Bore or tunnel diameter and length; tunnelling method; geotechnical reports; settlement monitoring; shafts; ground support; groundwater; crossings under roads, rail or occupied property; spoil and slurry handling; design and subcontractors.

Covers to discuss

Public/products liability, contract works, plant, project specific covers and PI where design or technical advice is assumed. Review sublimits and restrictions relating to underground property, subsidence, vibration and pollution.

Underground project information

Tunnelling methods, depth, ground conditions, groundwater control and the distance to live infrastructure should be described project by project. Tell the insurer whether the contractor performs boring, shaft sinking, lining, dewatering or temporary support, and who is responsible for design and survey information. Identify any work beneath roads, rail corridors, utilities or occupied property.

Ask how the proposed wording addresses subsidence, vibration, pollution, underground assets and damage to the works themselves. A liability policy and a contract works policy answer different loss types. Project-specific insurance and principal-controlled programs may also affect the contractor’s own cover; obtain the contract and insurance schedule for review.

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

“Does a generic civil liability description include microtunnelling?” Do not assume it does; the activity must be disclosed. “Who insures damage from settlement?” It depends on causation, ownership, contract terms and the relevant policies.

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

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