Requirements for insurance of work not done under contract
100 Requirements for insurance of work not done under contract
A contract of insurance in relation to residential building work required by section 96 must insure a purchaser of the land on which the work is done and the purchaser’s successors in title against the risk of being unable, because of the insolvency, death or disappearance of the contractor concerned—
to have the contractor rectify a breach of a statutory warranty in respect of the work, or
to recover compensation from the contractor for a breach of a statutory warranty in respect of the work.
If a partnership contracts to do residential building work, the insolvency of any of the partners constitutes the insolvency of the contractor for the purposes of a contract of insurance required by section 96 in relation to the work. The contract of insurance must include provision to that effect.
In this section—
contractor means a person to whom section 96 applies doing residential building work otherwise than under a contract.
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