Here’s a deep-dive on Clause 18.3 (1999) / Sub-Clause 19.2.4 (2017) — Insurance against Injury to Persons and Damage to Property.
1️⃣ Purpose of 18.3 (1999) / 19.2.4 (2017)
These provisions make sure there’s a dedicated third-party liability policy in place (jointly insured) to cover death or bodily injury to any person and damage to third-party property arising from the Contractor’s performance of the Contract, up to the Performance Certificate stage. In 1999, this sits in 18.3 and defaults to the Contractor as the insuring party; in 2017 it’s recast as 19.2.4, still Contractor-placed, expressly joint-named, with a cross-liability clause and a clear link to the Contract Data limits.
- 1999: insure “each Party’s liability” for third-party injury/property damage arising out of the Contractor’s performance, with a per occurrence limit (no aggregate) at least equal to the Appendix to Tender amount.
- 2017: insure (joint names) against death/injury or third-party property loss “arising out of the performance of the Contract,” policy must include a cross-liability clause and remain in force until the Performance Certificate; amount drawn from Contract Data.
2️⃣ Breakdown of the clauses
📘 1999 — Clause 18.3
- What’s covered: any third-party death/injury, and damage to property other than items insured under 18.2, arising from Contract performance, up to Performance Certificate.
- Limits: not less than the per-occurrence amount in Appendix to Tender; unlimited number of occurrences.
- Who insures / Names on policy: by default the Contractor; policy in joint names of Employer and Contractor; must extend to Employer’s property (other than 18.2 items).
- Permitted exclusions: (i) Employer’s land rights; (ii) unavoidable damage from executing/remedying the Works; (iii) listed Employer’s Risks (to the extent not commercially insurable).
- General insurance mechanics: evidence/policies to be produced under 18.1; joint insured treatment and separate cover per insured; remedies if the insuring party fails to maintain insurance.
📒 2017 — Sub-Clause 19.2.4
- What’s covered: death/injury to any person and loss/damage to any property other than the Works arising from Contract performance, pre-Performance Certificate; excludes loss/damage caused by an Exceptional Event.
- Must-haves: cross-liability clause (so Employer/Contractor are treated as separate insureds).
- When in force / Limits: in place before work starts; kept until Performance Certificate; limit per Contract Data (or as agreed).
2017 also separates Injury to Employees into 19.2.5 (workers’/employers’ liability), and adds 19.2.3 (Professional Indemnity) where the Contractor designs — both important companions to 19.2.4.
3️⃣ Key interpretations & what changed (1999 → 2017) — and why it matters
- Cross-liability made explicit (2017): The policy must treat Employer and Contractor as separate insureds — reducing intra-insured denial of cover (a common market requirement now).
- Exceptional Events carve-out (2017): Third-party property damage “caused by an Exceptional Event” is outside 19.2.4 unless your Contract Data says otherwise; this aligns insurance with the 2017 Exceptional Events regime in Clause 18.
- Clearer interfaces with other insurances (2017): Works cover (19.2.1), Goods in transit/on Site (19.2.2), PI (19.2.3), and Employees (19.2.5) are distinctly separated, avoiding overlaps/gaps that were often debated under 1999.
- Limits & caps synchronised with liability provisions (2017): The 2017 form ties several liability caps to the required insurance limits (e.g., for Employer property other than the Works → the 19.2.4 limit). This tightens risk/insurance alignment.
4️⃣ Cross-references you should connect
- Indemnities ↔ Insurance:
- 1999 17.1 indemnifies the Employer for third-party injury/property claims arising from the Works — the 18.3 policy is the funding mechanism backing that risk.
- 2017 17.4 (Indemnities by Contractor) mirrors the above; again 19.2.4 is the corresponding insurance layer.
- General insurance duties: Evidence of cover, joint-insured handling, and remedies if insurance lapses are in 1999 18.1; 2017 has 19.1/19.2 scaffolding the same control points.
- Works vs third-party property: Damage to the Works sits under Works insurance (1999 18.2 / 2017 19.2.1); third-party property sits under 18.3/19.2.4. Don’t conflate them.
5️⃣ “What-if” scenarios (with quick outcomes)
- Scaffolding collapse injures a passer-by on a public road.
Covered by 18.3/19.2.4 (third-party injury) — Contractor’s policy responds; joint names, cross-liability in 2017. Indemnity under 17.1/17.4 also bites, but the insurance should fund it. - Crane swing damages Employer’s existing building (not part of the Works).
Treated as third-party property damage to Employer property “other than the Works” — covered under 18.3/19.2.4; 1999 even says extend cover to Employer’s property. - Monsoon flood (Exceptional Event) sweeps debris into a neighbour’s compound.
In 2017, loss/damage “caused by an Exceptional Event” is excluded from 19.2.4 unless the Contract Data changes this — you’d look to the Exceptional Events clause and any separate insurance the Employer requires. - Subcontractor’s worker gets injured on Site.
That’s Injury to Employees (not third party) — 1999 18.4 / 2017 19.2.5; Employer and Engineer are additional insureds (subject to the usual carve-outs).
6️⃣ Suggestions for clarity & improvement (ready-to-use PC wording ✍️)
Goal: lock cover to modern market terms, remove ambiguity, align limits with liability and Exceptional Events.
- Specify the limit, basis & territory
“Under Sub-Clause 19.2.4, the per-occurrence limit shall be not less than [USD/X] with no aggregate cap; worldwide territorial limits and jurisdiction [Country/Arbitration seat].” - Primary & non-contributory + waiver of subrogation
“The 19.2.4 policy shall be primary and non-contributory to any insurance maintained by the Employer and waive subrogation against the Employer, Engineer and their Personnel except in cases of their wilful misconduct.” - Cross-liability (belt-and-braces for 1999 forms)
“For contracts based on the 1999 edition, the 18.3 policy shall include a cross-liability clause treating joint insureds as separate insureds.” (This is already explicit in 2017.) - Exceptional Events carve-back (optional, 2017)
“Notwithstanding 19.2.4, the policy shall include third-party liability arising from Exceptional Events, to the extent commercially available, with a sub-limit of [USD/X].” (Default 2017 wording excludes this unless you add it.) - Employer’s property (clarity, 1999)
“Confirm that ‘Employer’s property other than the Works’ includes existing buildings, utilities and adjacent non-Works assets within the Site boundary.” (1999 already points to extending cover to Employer’s property.) - Evidence & continuity
“Certificates of insurance and full policies (with endorsements) to be provided under 18.1 (1999)/19.1 (2017) before Site access and upon renewal; failure triggers Employer step-in to place insurance and back-charge premiums.”
7️⃣ Visual cheat-sheet (at a glance)
Who/what pays?
Contractor’s 18.3/19.2.4 policy → third-party injury / third-party property (≠ the Works) 🛡️
Contractor’s 18.2/19.2.1 policy → the Works & Materials 🏗️
Contractor’s 18.4/19.2.5 policy → injury to Contractor’s Personnel 👷
Contractor’s 19.2.3 (2017) → PI (design liability) ✍️
Final takeaways 🎯
- Treat 18.3 (1999) / 19.2.4 (2017) as your third-party liability backbone — separate from Works and Employees cover.
- 2017 improves market fit: cross-liability mandated; Exceptional Events exclusion is explicit — adjust in Contract Data if you want that risk insured.
- Keep indemnities, liability caps and insurance co-ordinated — especially where 2017 points caps to the insurance limits.