JCT Clause 21.2.1. is contained in the JCT Standard Form of Building Contract.
JCT 21.2.1 requires that insurance be arranged in joint names of the Employer and the Contractor, the cover protects the Employer in respect of their Legal Liability where loss or damage is caused to adjacent or surrounding property. Loss, Damage or Injury caused by a Contractor or their Sub-Contractor is Public Liability and would not be covered under this this insurance.
JCT 21.2.1 is usually purchased by the Contractor on behalf of the Employer and cover is provided to protect against the Employers liability for loss, proceedings or claims that could potentially be sustained due to non-negligent damage to property whilst carrying out a contract for perils:
- Subsidence
- Heave
- Landslip
- Collapse
- Vibration
- Lowering of Ground Water
- Weakening or Removal of Support
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