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Section 8Risks and Insurance

Clause 86.3

Contractor May Insure If Client Fails

Purpose

The Contractor may insure an event or liability which the contract requires the Client to insure if the Client does not submit a required certificate. The cost of this insurance is paid by the Client.

Practical Application

If the Client fails to provide evidence of required insurance, the Contractor can take out cover itself and charge the Client. This protects the project from uninsured gaps.

Common Pitfalls

The Contractor should notify the Client in writing before taking out replacement cover. The cost of the Contractor-arranged insurance is paid by the Client but should be at reasonable market rates.

📖 This summary is for reference. For the full, authoritative NEC4 contract text — including all amendments, guidance notes, and flow charts — visit the official NEC website.

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⚠️ This commentary is for reference only. Always refer to the full NEC4 contract text and seek professional legal or contractual advice for your specific project.