Property developers come in various formats.
Builders of new residential estates, single homes, refurbishment properties, conversion from offices to flats, commercial, private. Each type will require a bespoke package to cover their own specific needs.
The core covers for property developers will include: –
- Public & products liability.
- Employers’ liability if there are any employees or labour only sub-contractors.
- Contracts works cover.
In addition to these insurances the following may also be prudent: –
- Professional Indemnity
- Existing Structures
- Non negligence Insurance
- Legal expenses
- Contents
- 10 year warranties
It is usual for developers to rely heavily on sub-contractors and the contractual relationship with them can determine the insurances you require.
Not only are there different types of sub-contractor such as bonefide sub-contractors and labour only sub-contractors (LOSC) there are also different contracts available.
We can help you determine which type of sub-contractor you are using and if necessary, we would check their insurance for you. A contractor’s policy will typically have limitations on height or depth, and it may also have exclusions which would rule out the work they are actually doing. Typically, this may be demolition, piling or under pinning. As we have experience, we know what to look for.
Even when the contractors have insurance in place it may be necessary to cover the contingency of their insurance failing for some reason, such as a non-disclosure.
When a builder or bonafide sub-contractor that you use have their own annual contractors all risk insurance this will often cover the work they have done until completion of the contract which leaves the completed property uninsured after they leave site. We usually recommend that the developer has the contract works insurance as this has added benefit of covering the properties after completion, so you do not have to take out another insurance policy on the building if it isn’t sold.
We can arrange insurance policies so that banks or financiers are noted as fist loss payee, or composite insured, as many lenders are requesting more stringent insurance security.
