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International Construction Law Review

BOOK REVIEW - CONSTRUCTION LAW ALL RISKS INSURANCE

Chantal-Aimée Doerries QC

Construction Law All Risks Insurance, 2nd Edition. By Paul Reed QC. Sweet & Maxwell, 2016. ISBN: 9780414056534 (hbk). £275.
Modern construction contracts involve a complicated inter-relationship of obligations and risk. One of the ways in which the risk can be mitigated is by insurance and so the scope of the insurance available and the cover that is provided by policies in standard use are of central importance to this equation. The second edition of this work is therefore very much to be welcomed as bringing up to date and expanding the scope of the previous edition. The main area of update is to include the substantial reforms introduced by the long awaited and wide-ranging UK Insurance Act 2015 (the “2015 Act”) which came into force on 12 August 2016. Construction and engineering contracts, in all their forms, deserve a dedicated text separate from the general text books on insurance law because of the importance of the subject matter and the first edition of Construction All Risks Insurance admirably met that need.
The first edition was published in March 2014 and the second edition has appeared swiftly. One reason for the short interval between the publications is the need to accommodate the significant changes introduced by the enactment of the 2015 Act which has resulted in the addition of a new chapter dealing with the effect of that statute at chapter 5. Of particular interest to those involved in the construction industry are the new remedies introduced to meet either non-disclosure or misrepresentation by the insured. As with the text generally, the law is set out clearly and accessibly and the chapter maintains a logical progression that makes it easy for the reader to follow the effect of the relevant changes introduced by the Act. The UK 2015 Act was preceded, and influenced, by earlier similar reforms to insurance legislation made in Australia and in New Zealand and, in addition to addressing the UK legal perspective, the book delves into some of the relevant comparable insurance legislation from Australia and New Zealand. One central distinction is that the UK 2015 Act is more limited in scope with its focus on regulating business insurance contracts with an earlier act, the Consumer Insurance (Disclosure and Representations) Act 2012, dealing with consumer contracts.
The structure of the book is conventional, and very user friendly, in that the topics covered generally become more specific through the work. The book starts with two very useful introductory chapters covering an overview and historical perspective of CAR and the allocation of risk construction contract. Thereafter, the chapters cover more specific aspects ranging from common features in CAR policies to misrepresentation, fraud and the duty of utmost good faith to chapters on interim insurance, the insured and

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