Due to the complexity of construction projects and related contract agreements, it is essential to have comprehensive insurance protection in force to ensure that contractual obligations are met.
Our construction specialists have been involved in the sector for over 30 years and as a result we understand the issues typically faced by property developers, funders and contractors. By working closely with our clients and their professional teams we can provide competitive, bespoke insurance solutions to protect key construction assets, legal liabilities and financial exposures.
Because it is the developers and their funders who suffer most if an insurance programme does not fully protect the assets, liabilities and potential financial exposures it is natural that the developer should take control of insurance arrangements. Consequently, many construction projects are now insured by developers rather than contractors and typically through a Developer’s Project Insurance (DPI) policy.
Arranged by the developer, a DPI policy covers all contractual parties and provides protection for the assets, from legal liabilities and for the financial exposures of the developer and their funders (those arising out of the construction project). It can be arranged either on a project specific basis or on an annual basis and can include the following covers:
The key benefits of a Developers Project Insurance include:
A DPI policy can be considered at a very early stage once details and values of a project are known. By adopting the DPI approach and working closely with the developer and the professional team, risks of disputes can be minimized, misunderstandings resolved and potential cost duplications addressed.
Annual Contractor Policies
We can provide competitive annual insurance policies for contractors which can include covers as follows:
We can also advise on and arrange your corporate insurance requirements, such as directors & officers, professional indemnity and office combined covers. Please click here or get in touch with us to find out how we can help you.
Latent Defects Insurance and Housing Warranties
This insurance is available for residential, commercial or mixed use projects and can include the following cover options:
The demand for this type of Insurance and housing warranty continues to grow across all sectors including commercial property, private rented sector (PRS), student accommodation, residential and mixed use developments. Reasons for this growth are several including:
A Latent Defects Insurance policy or Housing Warranty provides cover for a period of up to 12 years with effect from practical completion of a building or legal exchange (residential properties) and is non-cancellable by insurers. It is usually arranged prior to the start of construction period to obtain the most beneficial terms; however, a limited number of insurers can consider semi-completed or completed developments.
Whilst this cover is not typically seen as a ‘total solution’, it can provide greater comfort and peace of mind, not only to the developers and their funders, but also to future purchasers and tenants for the whole period of the policy. This cover is particularly important because no cover is provided under a property policy for latent or inherent defects.
Head of Construction