A new model insurance fire safety clause for high-rise repairs has been published by the International Underwriting Association (IUA), designed to speed up the removal of unsafe cladding and build insurer confidence in the industry
The new fire safety clause for high-rise repairs, specifically focusing on residential buildings, was developed in collaboration with the Department for Levelling Up, Housing and Communities for use in work being completed under the government’s £4.5bn Building Safety Fund.
The Building Safety Fund was introduced to cover the cost of refurbishment work- such as the removal of unsafe cladding– on high-rise residential blocks over 18m.
The new model insurance clause covers fire safety risks to build insurer confidence and enable a greater safety culture
A survey of IUA members in September last year revealed a cautious willingness to underwrite fire safety risks on new projects to remove defective cladding from high rises.
Around two-thirds of respondents stated they would provide a limited form of cover, whilst a further 4% were happy to offer unrestricted protection. Whilst this is promising, the new fire safety clause for high-rise repairs aims to encourage wider uptake of these refurbishment projects.
Levelling up secretary, Greg Clarke said: “Our priority is making sure people’s homes are safe and that safety standards are high.
“Alongside our tough new regulatory regime, this new clause that has been developed with my department will help us do just that.
“We welcome the work of the IUA and the underwriters who are taking a proportionate approach to fire safety cover and I thank insurers in advance for using it.”
The model clause is freely available for use by underwriters
Designed for underwriters looking to provide professional indemnity insurance for building cladding remediation work, it is hoped that the new fire safety clause will encourage a superior safety culture within the construction industry.
Chris Jones, IUA director of Legal and Market Services, said: “Our new model clause sets out a number of key risk management processes that will ensure work being carried out is conducted within recognised industry standards. This will help improve accountability for safety measures and foster an investment in quality construction.
“The market for construction professional indemnity insurance has been difficult in recent years, reflecting concerns about the potential for historic liabilities to develop into future claims following the Grenfell Tower tragedy. Each new risk must continue to be assessed on a risk-by-risk basis, of course, but the clause should provide underwriters with greater confidence to offer effective insurance solutions for future work.”
