Construction Insurance Claims UK: Legal Guide (2025)

Overview

A construction insurance claim is a formal request made to an insurer for payment or indemnity under the terms of a policy tied to a construction project. The policy itself is a commercial contract, and the claim is how you ask the insurer to honour that contract after a loss, incident, or allegation.

In the UK, construction insurance is not a single product. It's a layered set of policies that different parties on a project carry, often overlapping, sometimes with gaps between them. A contractor may hold Contractors All Risks cover, a consultant will typically carry Professional Indemnity, and most parties involved in the works will hold Public Liability.

Each policy responds to a different kind of risk, has its own triggers, and comes with its own notification rules. Understanding which policy responds to which event, and reading the wording carefully, is half the battle when a claim arises.

Key steps

1. Read the policy before you need it. Pull out the schedule, the wording, and any endorsements. Note the insured perils, the excess, the limit of indemnity, the notification clause, and any conditions precedent. Conditions precedent matter because breaching one can void cover entirely, even if the loss is otherwise legitimate.
2. Notify your insurer promptly and in writing. Most construction policies require notification within a specific window and in a particular form. Ring the broker, follow up in writing the same day, and keep copies of everything. Late notification is one of the most common reasons insurers raise coverage issues, so treat this step as time-critical.
3. Preserve and gather evidence. Take photographs, secure the site where safe to do so, keep damaged materials, and obtain witness accounts while memories are fresh. Collect contracts, programmes, site diaries, RAMS, delivery notes, and any correspondence that shows what happened and when. Strong contemporaneous evidence almost always strengthens a claim.
4. Engage cooperatively with the loss adjuster. The insurer will usually appoint a loss adjuster to investigate. Be responsive, provide what they reasonably ask for, and keep a paper trail of every exchange. You're entitled to be accurate and measured, but not to speculate. If a question falls outside your knowledge, say so rather than guessing.
5. Escalate properly if the claim is denied or undervalued. Ask for the decision in writing with reasons, check those reasons against the policy wording, and consider whether the refusal is actually sound. Options from there can include internal complaints procedures, the Financial Ombudsman Service in eligible cases, or court proceedings for larger commercial disputes.

Common questions