Fault does not come into it. It comes down to risk allocation under the contract. If the Contractor incurs Defined Cost in providing the works even if it is for an insurable event, then at first level, they are reimbursed it. However, under clause 7 of the Schedule of Cost Components, the cost of events for which the Contractor is required to insure are deducted. The excess / deductible is stated in Contract Data Part 1 by the Employer, so the Contractor is reimbursed up to this amount, but then has to bear the remainder of the costs above this amount.