Dispute type
Construction Insurance
Risk transfer that may be arranged around the cost and capital profile of construction.
- A judgment or award wonConsidered
- A judgment against you
- Funder capital deployed
- Law firm fees and WIP
- Security for costsConsidered
- The opponent's costsConsidered
- DisbursementsConsidered
- Own legal costs
Illustrative. The exposures a dispute can put on a balance sheet. What a policy responds to is set by its wording.
Can construction be insured?
Construction and engineering disputes, in court or arbitration, are commonly insured for costs risk through ATE or arbitration ATE, which can also be offered as security. Delay and quantum expert evidence is usually central to underwriting.
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Key points
- Document-heavy and expert-driven, often in arbitration.
- Adjudication can shift cash flows before the final outcome.
- Contractual time bars are checked early.
The risk profile
Construction and engineering disputes are document-heavy, expert-driven and often run in arbitration or specialist courts.
Interim adjudication can shift cash flows before the final outcome.
Which structures apply
- ATE and arbitration ATE
- Security for costs cover
- Award cover for large infrastructure arbitrations
Illustrative scenario
A contractor pursues a £22m claim for delay and disruption in arbitration. It insures adverse costs and uses the policy as security when the employer applies for it.
Figures are invented to show the mechanics. They describe no real client, matter or outcome.
Underwriting considerations
Delay and quantum expert evidence, contemporaneous records, contractual time bars and the employer's ability to pay.
Frequently asked
Can construction arbitrations be insured?
Yes, arbitration ATE covers adverse costs awarded by the tribunal and can be offered as security.
Does adjudication affect insurance?
An adjudicator's decision can shift cash flows and settlement leverage, and underwriters take it into account when assessing the final dispute.
Can a contractor insure a delay claim?
Yes. ATE can cover adverse costs in court or arbitration, underwritten largely on the delay and quantum evidence.
Is security for costs common in construction arbitration?
It is requested regularly, particularly against claimants with limited assets, and ATE can be offered as the security.
Can a construction award be insured?
Award insurance can protect the value of a large award against challenge or non-payment, subject to underwriting.
General information only. This page is not legal, financial, investment or insurance advice. Any insurance is subject to underwriting and to the terms of the policy wording issued.
Where to go next
Relevant cover
Other disputes
Jurisdictions