Commercial Latent Defect Policies

Commercial property defect insurances provide cover for structural damage to a new or existing Commercial property building, where the damage arises after completion of the build and may be caused by defects in the design, materials, or workmanship. The policy period is usually for 10 or 12 years from the date of Practical Completion of the building.

These policies are valuable for owners and tenants of commercial buildings, but also protects the asset value if the property is traded in the future. The provision of the policy reassures future purchasers, and is particularly valued institutional investors, pension schemes and funders. Likewise, a number of our Commercial property developing clients appreciate the value the policy brings in protecting against failures or gaps in collateral warranties where Main Contractors or Sub-contractors have ceased trading during the build period or following the completion of the building. Defects policies have no restrictions on the number of assignments to future owners/occupiers and cover can be adjusted to suit a particular transaction.

At Building and Land Guarantees we use our considerable experience in this market sector, to find Insurers, negotiate with them and then find the most cost effective and suitable solution for our clients. Given the unrivalled experience we have in this market sector, our clients can rely on our expertise and experience, gained from being involved with many of the most influential property developers and contractors across the UK over the past 25 years.

We have access to specialist insurers with exclusive arrangements for this type of protection which enables us to negotiate flexible and affordable covers to meet our clients’ needs.

We will work in partnership with you to understand your requirements and advise on the solutions available; by working closely with you we can ensure you get the right cover at a competitive cost.

Who should be interested;
• Commercial Property Developers;
• Property Owners;
• Main Contractors;
• Associated professionals – Project Managers, Architects, Structural Engineers;
• Funders;
• Institutional Investors;
• Pension Funds;
• Receivers and Administrators