Cladding remediation contractor insurance

Why this is a restricted market

Following high-profile fires, many liability and PI policies carry cladding, external wall system or fire-safety exclusions. Some exclude combustible materials altogether, some exclude buildings above a stated height and some exclude any claim connected to fire-safety defects regardless of cause.

Remediation contractors may therefore find that a standard trade policy has an exclusion precisely where they now work. Reading the exclusion wording is the first task, before you consider a new policy.

• Height thresholds, for example storeys or metres, in exclusions
• Material-based exclusions for certain panel or insulation types
• Work-method exclusions such as hot work on external walls
• Exclusion of claims connected to fire safety or building safety defects

Scope and work method

Underwriters want to separate removal and replacement, fire stopping, cavity barriers, balcony work and surveys. High-rise work, temporary roofs, scaffold, access systems and hot work each change the exposure. A narrowly defined scope is easier to present than a general 'remediation' description.

Surveys, testing and information

Fire risk appraisals, intrusive surveys and material testing support an underwriter's understanding of the building. Whether you rely on a client's survey, commission your own or subcontract it affects who carries which responsibility. Certification of materials or competency is not proof of insurance and does not remove an exclusion.

Design responsibility

If you design the replacement system, specify materials or take over design from others in a design-and-build contract, you may carry a professional duty. Claims-made PI with retroactive dates applies, and fire-safety exclusions are common. If design stays with a consultant, make sure your contract says so. We do not assume that design and construct PI is available for this niche.

Historic exposure and past work

Long-tail claims may arise from previously installed cladding or insulation. Whether past work is within the policy, how far back any retroactive date goes and whether exclusions apply to past projects are separate from your current remediation contracts. Be ready to describe earlier cladding activity.

Third-party, funding and contract duties

Clients, funders, warranty providers and managing agents may ask for particular evidence of insurance, limits or collateral warranties. We would review those terms against what insurers can offer. We do not state what any law or scheme requires; check the contract and take legal advice where needed. Where a project is large or run as a programme, it may sit outside the market that serves small and mid-sized contractors.