Under the Agreement for Minor Building Works (MW98) where the works are an extension to or an alteration of an existing structure, the employer is required by the contract to insure the works. The contract allows for the contractor to insure the works where it is not possible for the employer to insure.
This insurance is in addition to the normal home contents insurance and building insurance. It is taken out in both the names of the employer and the contractor and covers all unfixed materials and goods delivered to and placed on or adjacent to the site against loss and damage by fire, lighting explosion, storm, tempest, flood, bursting or overflowing of water tanks, apparatus or pipes, earthquake, aircraft and other aerial devices or articles dropped there from, riot and civil commotion, for the full reinstatement value.
The contractor has other obligations as regards insurance. The contractor is required to indemnify the employer against, any expense, liability, loss, claim or proceedings for personal injury of any person caused by the carrying out of the works. Except if the same is due to an act or neglect of the employer or any person for whom the employer is responsible.
The contractor is also responsible to insure his employees against injury.
The contractor is responsible to insure for any loss, injury or damage to any property real or personal that do not form part of the works.
While care has been taken in preparing this note it should not be treated as definitive legal interpretation or commentary. You should seek proper legal advice from a suitable qualified person. *Not for use in Scotland