A contractor was undertaking a contract for the demolition and re-build of a local authority property. A project policy was issued naming both the Employer and Contractor together with any sub-contractors.
Shortly prior to completion and hand-over of the contract, over night there was an escape of water resulting in extensive damage of the works already completed. The escape arose from a failed pipe fitting and expert investigation identified the failure had arisen due to defective workmanship on the part of the Contractor when installing the pipe work. Therefore an indemnity was provided under the project policy.
The total claim payment was £95,000