Contract Works Insurance Was the Damage "Unforeseen"?

By Patrick Mead, Partner

A question which often arises in relation to Contract Works/Material Damage policies, is whether the physical loss or damage to the contract works could be said to be "unforeseen".

In CA Blackwell (Contractors) Ltd v Gerling Allegeneine Verischerungs AG [2008] 1 All ER (Comm) 885, a good deal of evidence was given at trial as to how the contractor had protected (in that case) its earthworks from water damage during the course of the works.

Although it had been contended by one of the parties in that case that "disaster was inevitable with work continuing [through a period of predicted wet weather]", the Court found that "proactive" measures taken by the insured to seek to protect the works from water damage, were such that there was no suggestion that the policy would not otherwise respond (other than with respect to any loss that was excluded due to the defective workmanship exclusion).