IUA publishes cladding remediation clause
The International Underwriting Association (IUA) have collaborated with the Department for Levelling Up to publish a new model insurance clause covering fire safety risks.
The model clause is freely available to use by underwriters who are looking to provide professional indemnity insurance for building cladding remediation work. The clause aims to help speed up the removal of unsafe cladding, encouraging greater safety culture within the construction industry.
Levelling up Secretary, Greg Clarke stipulated: ‘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 clause intends to provide insurers with increased confidence in risk management processes employed within the construction sector.
Chris Jones, IUA director of Legal and Market Services, stated: ‘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 publication of the clause comes shortly after a difficult period within the market, for construction professional indemnity insurance, following the potential for historic liabilities to develop into future claims post-Grenfell. Whilst each new risk must continue to be assessed on a risk-by-risk basis, the clause is a welcome development for underwriters as it encourages greater confidence in offering effective insurance solutions for future work.
Copies of the IUA Building Safety Fund Cladding and Fire Safety Limited Exclusion and Aggregation Clause are available to download via the association’s model clauses website.
Contact
Tim Johnson
Partner
tim.johnson@brownejacobson.com
+44 (0)115 976 6557
Our expertise
You may be interested in...
Legal Update
Walking the fine line: The statutory duty of candour and insurance
Legal Update
FCA launches consultation on broker remuneration for multi-occupancy buildings insurance
Legal Update
AI is creating fraudulent claims
Legal Update
Shoplifting epidemic by organised criminal gangs: The impact for insurers
Legal Update
Death and disgrace policies: What can insurers learn about the allegations against Gregg Wallace?
Legal Update
Insurance complaints surge continues
Press Release
Browne Jacobson continues strategic expansion in Wales with new corporate partner
Legal Update
Embedding social value in procurement
Legal Update
Planning Reform Working Paper: Planning committees
Legal Update
Navigating workplace sexual harassment laws during the festive season
Press Release
Comments on the National Planning Policy Framework reform
Opinion
Revolutionising the Workforce: Impact of Get Britain Working White Paper
Legal Update - London Market Quarterly
London Market Quarterly December 2024: An eye on what the market needs to know
Press Release
Browne Jacobson advises Oxford City Council on Barton Park affordable housing deal
Published Article
Johnson et al v FirstRand Bank: Judgment sends warning across financial services intermediation
Opinion
Balancing employer flexibility and employee rights
Legal Update
The ‘grate’ cheese robbery: Implications for insurance professionals
Legal Update
Environmental crime and the impact for insurers
Legal Update
Carbon fraud prompts insurance response
Legal Update
What might a Trump victory mean for the UK insurance industry?
Legal Update
Post Office scandal: Lessons for underwriters
Legal Update
Weather protection parametric insurance: A sign of things to come?
Legal Update
Know your dispute resolution clauses: Key take-aways from Kajima v Children’s Ark and Lancashire Schools v Lendlease
Opinion
Law Commission initial consultation published on reforming Part 2 of the Landlord and Tenant Act 1954
Press Release
Browne Jacobson advises retail giant The Range on its acquisition of Homebase
Legal Update
Building an inclusive workplace: Strategies for attracting and retaining disabled talent
On-Demand
Kinship care: DJ v Barnsley Metropolitan Borough Council and SG
Legal Update
After a pause, Buy Now Pay Later (BNPL) regulation becomes one step closer
Legal Update
Updates to the UK’s Arbitration Bill
Legal Update
Ozempic: The rising costs and coverage issues of weight loss medication
Legal Update - Employment Rights Bill
What does the Employment Rights Bill mean for employment practices liability insurance?
Legal Update
ICAEW: Changes to PII requirements
Legal Update
Contractor insolvency: Peabody Trust v NHBC
Press Release
Browne Jacobson sponsors public sector think tank on new report
Legal Update
Insurability by design: Increased transparency for vehicle manufacturers and insurers
Press Release
Browne Jacobson continues expansion in Ireland adding real estate and construction practices
Legal Update - Building Safety Act
The Building Safety Act 2022: Managing risks for private equity investors and acquirers
Legal Update
By a narrow 2 to 1 majority, the Court of Appeal finds in favour of insurers in the construction of an exclusion clause in a W&I policy
Legal Update
Organisational approaches to ESG and sustainability matters
