Insurance considerations for cladding removal and remediation projects

In recent years, cladding remediation has become a significant focus across the UK construction and property sectors. In light of regulatory changes and increased scrutiny on building safety, many commercial property owners and developers are undertaking projects to remove or replace external cladding systems.

While these works are an important step toward improving building safety, they can also introduce a range of complex risks during construction. Ensuring that the appropriate insurance arrangements are in place is therefore an essential part of any remediation project.

Here are several areas insurers will typically examine carefully when assessing cladding removal works.

 

Understanding the cladding system involved

One of the initial questions insurers will ask is what type of cladding system is being removed or remediated.

Different materials carry different risk profiles. Systems such as aluminium composite material (ACM), high-pressure laminate (HPL), and certain timber-based cladding systems have attracted particular scrutiny in recent years due to concerns about their behaviour in the event of a fire.

Providing clear information about the materials involved, along with details of the proposed replacement system, where applicable, helps insurers assess the project more accurately and structure suitable cover.

 

Managing fire risks during the works

Cladding removal can temporarily expose insulation layers, structural elements, or fire barriers within a building’s external wall system. At this stage of the project, fire safety becomes especially important. Insurers generally require strict controls around hot works, clear permit procedures, and appropriate fire watch arrangements to be in place while work is in progress.

Temporary fire detection systems, maintaining compartmentation wherever possible, and ensuring clear emergency access routes are also factors that may influence how the project is assessed from an insurance perspective.

 

Whether the building remains occupied

Another important factor is whether the building will stay occupied during the remediation work. Projects involving offices, residential properties, or mixed-use developments can pose extra challenges if tenants or residents remain in the building during construction.

In these cases, insurers may expect phased work programmes, robust evacuation procedures, and temporary fire safety measures to be well documented.

Where buildings are completely vacant during the project, some risks may be reduced although this can introduce other considerations such as site security.

 

Regulatory compliance and approvals

UK cladding remediation projects must comply with the evolving regulatory framework introduced following the Grenfell Tower tragedy.

Legislation such as the Building Safety Act 2022 (as amended 2024-2026) has introduced additional regulatory requirements and safeguards, especially for higher-risk buildings. Insurers will often require confirmation that the appropriate regulatory processes have been followed, including approvals from the Building Safety Regulator.

Ensuring the project team is familiar with the current regulatory regime can help avoid delays and make it easier to arrange the necessary insurance cover.

 

Professional design and project responsibilities

Cladding remediation projects typically involve multiple specialist contractors, designers, and consultants. Insurers will therefore look closely at how professional responsibilities are allocated across the project. Clear contractual arrangements, alongside confirmation that appropriate professional indemnity cover is in place for designers and consultants, can help mitigate potential liability risks if issues arise during or after the works.

 

Access, height, and façade complexity

Finally, the building's physical features significantly influence how risk is assessed. High-rise structures, complex façade systems, and projects that require extensive scaffolding or specialised access equipment can increase the overall risk exposure. Activities such as crane operations, façade access platforms, and working at height all demand careful planning and risk management.

Providing insurers with detailed project information early in the process can help ensure that the necessary cover is arranged without unnecessary delays.

 

Planning insurance early in the project

Cladding remediation projects involve a complex mix of regulatory, construction, and fire safety issues, unlike many other building works.

Early planning is therefore vital from an insurance perspective. Consulting an experienced insurance broker before starting can help to ensure the correct policies are in place. This may include Construction All Risks (CAR) insurance, which is designed to protect building works in progress against events such as damage, fire, or accidental loss during the project.

CAR policies are often arranged in the joint names of key parties involved in the project, such as the building owner, contractors, and funders.

With the right preparation and guidance, property owners and contractors can approach cladding remediation projects with greater confidence that both safety and financial protection are well managed.

 

Specialist help

If you are planning a cladding remediation project or would like to review the insurance arrangements for an upcoming development, Fidentia’s Commercial Insurance team can help. Our specialists have experience supporting businesses across the construction and property sectors and can guide you through the insurance considerations involved in more complex building works.

To discuss your requirements or review your current cover, please contact the Fidentia Insurance team on tel 020 3150 0080 or email info@fidentiains.com