Commercial Building Warranty
Our Commercial Building Warranty provides Latent Defects Insurance for up to 10 years from completion and is available for a wide range of buildings:
- office buildings / business parks
- manufacturing / industrial / storage
- hospitals / schools / universities
- public buildings / leisure and entertainment / sports venues
- retail / shopping malls / supermarkets
Who will the policy protect?
The cover can protect all the parties to Project:
- ultimate owner
- financiers and investors
- main contractor
- occupiers and future tenants
Why take out Commercial Building Warranty Insurance?
Commercial developments are often large projects and may represent a substantial investment by the developer or the ultimate owner / landlord. It may be possible to obtain collateral warranties from the parties to the project (builder, architect etc.) but these generally cease if the party ceases trading. Professional Indemnity policies may have inadequate limits of indemnity in relation to the project.
With a Commercial Building Warranty you will enjoy the following benefits:
- full risk transfer on day 1 after completion regardless of the solvency of the contractors
- cover of defects in the building for up to 10 years due to defective design, defective workmanship or defective materials
- simplified claims process – a claim is submitted directly to the Insurer
- waiver of subrogation rights removes the need for litigation or to prove liability against a third party
- transferable to a new owner therefore improving saleability
- makes the building more attractive for landlords and tenants as the potential defects liability risk has already been transferred to an Insurer
- protection of those funding the project and so encourages financial support
Optional extensions can include:
- sums insured can be indexed to protect against inflation
- loss of rent cover can be included if repairs are needed
- technical support from the Insurer’s specialist Building Surveyors before and during construction
Because no two large projects are the same, we tailor each building warranty policy to the specific needs of the dlient.
What can the Policy cover?
- defects in the structure of the building
- weather-tightness issues
- contaminated land
- professional fees
- debris removal
- waiver of subrogation rights against architects and others
- loss of rent receivable or payable
- consequential losses due to Business Interruption
- mechanical and electrical systems (normally for up to 5 years)
When should cover be arranged?
The best time to contact us for a quotation is at the earliest stage in the project before construction has started which will ensure that you receive the best possible quotation. After work has started, the costs of the policy will increase as there will be elements of the project which the Insurers have not had the opportunity to check and verify.