Principal Controlled Insurance

Principal Controlled Insurance (also known as Owner Controlled Insurance) is a comprehensive risk management solution for construction projects. Designed for developers, project owners, and construction companies, this policy streamlines coverage by placing insurance under the principal’s control rather than individual contractors. This approach ensures consistency in protection, reduces coverage gaps, and can lead to cost savings.

Whether you're managing large-scale developments or complex infrastructure projects, we can help you secure the right coverage to protect your financial interests and ensure smooth project completion.

What does Principal Controlled Insurance cover?

Principal Controlled Insurance is tailored for large-scale development and construction projects with substantial financial risks. Unlike traditional project insurance, which primarily covers contractors and consultants, this type of policy is specifically designed to protect the principal, ensuring greater control over risk management.

A Principal Controlled Insurance policy safeguards against various financial losses, including those arising from design errors, miscalculations, and specification issues. It can also cover “Fit for Purpose” obligations, depending on the project’s delivery structure.

This coverage is typically acquired on a project basis, extending protection to all project participants and mitigating significant financial risks throughout the construction process.

Our insurance brokers can assist you with tailor made packages that include:

• Contract Works,
• Public Liability
• Delayed Start-Up
• Professional Indemnity
• Pollution Liability

Do I need Principal Controlled Insurance?

Traditionally, principals require contractors and consultants to hold Professional Indemnity insurance throughout a project’s duration, often extending six to seven years post-completion. However, relying solely on this approach can expose principals to significant risks.

Some common issues for Principals include:

• Inaccurate description of the professional services being carried out,
• Inadequate cover – such as negligence only, rather than Civil Liability
• Exhaustion of the contractors aggregate limit under their annual policies
• High deductibles
• Unexpected exclusions such as property damage and/or injury
• Breach of contract
• Unreasonable conditions such as loss mitigation

A Principal Controlled Insurance policy helps address these gaps, ensuring comprehensive protection and reducing potential financial liabilities.