So, let’s start with a brief jump back to the 1980s, at this time fires within construction sites reached an all time high. They were so regular and severe that many in the insurance industry questioned if it was feasible to keep supplying cover. It was then that the important step of introducing the subsequent publication of ‘The Joint Code of Practice for Fire Prevention on Construction Sites’.

Now jump back to present day, and even though we still experience close to 300 fires on construction sites around the UK every year, the severity of fires on construction sites has fallen dramatically. Within the use of risk surveys, it has been found that in the main part sites are now compliant with the code and site workers are well read on its contents.

Unfortunately, as we move away from fires, the risk is now water. Water loss has become the largest cause of property loss within the construction industry.

There are many factors that can result in water damage such as rainwater ingress if a site does is not made adequately water-tight ahead of works starting, or escape of water following poorly fitted water pipes, this can be a result of insufficient testing before fitting.

Though these incidents can often be minor the risk is of a larger issue causing thousands or millions of pounds in damages. According to one insurer, water escaping from a failed joint at a high-rise development in London recently led to a £25 million claim.

Firstly, it is extremely important to ensure the correct level of insurance cover is in place to support it the unfortunate event of water loss or fire. The ‘Managing Escape of Water Risk on Construction Sites’ guidance from the Construction Insurance Risk Engineers Group (CIREG) is available to access for all site workers but there appears to be a lack of understanding on many construction companies and sites.

Within the guidance there are many helpful tips on management, design aspects and the quality of installation, along with support on mitigation and emergency/disaster response. As with the Fire prevention guidance this can also be downloaded online for free.

We feel that it is now very important to share this advice and guidance with all clients within the construction industry, insurance industry or work within risk management to help minimise this risk.

Following this as insurance brokers we have seen this kind of issue arise within no construction sites and organisations. Whether you are a non-profit organisation, charity, social enterprise, community or voluntary group it is important to speak to your insurance representative about this fire and water loss cover to ensure you have the appropriate cover where required.