Lateral Support Insurance

Lateral support insurance for consulting engineers and construction projects

Cover for damage to adjacent property caused by excavation, deep foundations, retaining works or loss of subjacent support. Arranged via Lloyd’s markets for South African engineering practices and contractors.

Excavation projects create a specific legal duty in South African common law: property owners and contractors must not withdraw lateral or subjacent support from neighbouring land. When basement excavation, deep foundations, retaining walls, underpinning or urban service trenches damage adjacent structures, the resulting claim can be excluded from standard Contractors All Risks policies. Berkley Risk arranges dedicated lateral support cover through Lloyd’s, tailored to the engineering discipline and the site conditions.

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What Berkley Risk reviews for lateral support insurance

Structured review across the areas insurers focus on for lateral support insurance. Every review is documented and shared with the client.

Contractors All Risks (CAR):

Comprehensive coverage for Principals, Contractors and Sub-Contractors against a wide range of construction-related risks, ensuring financial security throughout the project lifecycle.

Mobile Plant & Hired-in Plant:

Coverage for hired-in plant and mobile plant on site, including essential equipment like tower cranes, safeguarding against damage or loss.

Project Delay & Political Risks:

Protection against delays caused by the loss of critical items and political frustration of contracts, ensuring your project stays on track.

Mobile Plant

Insurance for specific production lines and critical plant, covering breakdowns and the resulting financial impact, minimizing downtime and disruption.

Professional Indemnity:

Specialised coverage for Design Engineers, Architects, and Consultants, protecting against claims related to professional services.

Single Project Liability:

Liability coverage for activities across the entire site, protecting against third-party damage and injury claims.

When lateral support becomes an insurance question

Financial Security: Protects against a wide range of construction-related risks, ensuring the financial stability of your projects.
Risk Mitigation: Comprehensive coverage minimizes risks at every stage of your project.
Specialised Coverage: Tailored solutions for specific needs, including professional indemnity and machinery breakdown.
Expanded Capacity: Enhanced coverage options through our reinsurance partners and Lloyd’s underwriting capacity.
Compliance Assurance: Ensures compliance with legal obligations and mitigates liability risks.

What this cover is not

Not Contractors' All Risks (CAR/EAR)

CAR/EAR cover damage to the works themselves during construction. Lateral support responds to damage caused to adjacent third-party property by the removal or reduction of lateral support during the insured operations.

Not Professional Indemnity (PI)

PI responds to design errors and negligent advice by the professional team. Lateral support responds to physical damage arising from the operations, not from design negligence.

Not pre-existing damage

Only damage caused by the insured operations is contemplated. Existing structural conditions, prior damage, or age-related deterioration are not covered.

Not damage from unrelated causes

Natural subsidence, seismic events, or ground movement that occurs independently of the excavation, piling or foundation activities is outside the scope of this cover.

The specific scope, exclusions and conditions are governed by the policy wording. A cover review with Berkley Risk clarifies how lateral support cover interacts with your existing insurance programme.

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Information insurers require

Submissions for lateral support cover generally require: site plan and boundary drawings, consulting engineer’s geotechnical report, method statement for the excavation or retention system, pre-condition survey of adjacent structures, contract type (NEC / FIDIC / JBCC), depth and proximity to boundary, and the CAR/PI insurance already in place on the project. Berkley Risk provides a submission template to structure this information for underwriters.

Request a Lateral Support Insurance Enquiry

Working on an excavation, retaining or piling project where lateral support cover should be arranged separately? Complete the enquiry form and a Berkley Risk specialist will respond within 48 hours.

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Frequently Asked Questions

What is lateral support insurance?

Lateral support insurance covers third-party liability for damage caused to adjacent properties when excavation, piling or retaining works withdraw lateral or subjacent support from neighbouring land. It is typically arranged as a specific policy or endorsement alongside Contractors All Risks (CAR) cover for projects with excavation adjacent to existing structures.

Is lateral support included in a standard CAR policy?

Not usually. Most standard CAR wordings in South Africa exclude or limit lateral and subjacent support liability. Where the risk exists — urban excavation, deep basements, retaining works close to boundaries — a separate lateral support insurance section or standalone cover is typically required.

Who typically arranges lateral support insurance?

The main contractor, developer or consulting engineer typically arranges cover. Consulting engineers may require the contractor to hold lateral support insurance as a condition of the appointment. In some contracts, the developer arranges principal-controlled insurance that includes lateral support extensions.

Does lateral support cover apply to the works themselves?

No. Lateral support cover responds to damage to third-party property, not the works being constructed. Damage to the works is covered under CAR. Both policies work alongside each other for projects with excavation risk.

What information do insurers require to quote lateral support cover?

Insurers typically require: site plan and boundary drawings, geotechnical report, excavation method statement, pre-condition survey of adjacent structures, project contract type (NEC / FIDIC / JBCC), excavation depth and proximity to boundary, and details of CAR and PI cover already in place. Berkley Risk provides a submission template to guide this.

Are consulting engineers protected by their own PI for lateral support claims?

Consulting engineers hold their own professional indemnity cover for design errors, but PI does not respond to physical damage on the site. Physical damage to adjacent structures is a liability question that lateral support cover is specifically designed to address.

Does Berkley Risk provide engineering advice on excavation methods?

No. Berkley Risk is an FSP-licensed insurance broker. Engineering methods, geotechnical assessment and structural design remain the responsibility of appointed consulting engineers. Berkley Risk arranges the insurance that responds to the risk those methods create.

Berkley Risk (Pty) Limited (Registration Number 2017/412000/07) is an authorised Financial Services Provider under the Financial Advisory and Intermediary Services Act No 37 of 2002 – FSP#54407

Berkley Risk (Pty) Limited (Registration Number 2017/412000/07)

Authorised Financial Services Provider under the Financial Advisory and Intermediary Services Act No 37 of 2002 – FSP#54407