Latent Defects
Latent Defects insurance is a cover that provides owners of new commercial and industrial properties protection against damage caused by defect in design, workmanship or materials not discovered before the cover commences.
Historically, Contract Works cover would provide protection in the case of new works during the construction phase and the maintenance period of a new building. After the handover, an owner would have to prove that any damage was the result of negligence on the part of on or more parties to the construction contract. The options open to the property owner would be
- Negotiate with the builders or design team to correct the problem
- Sue the builders or design team If they deny any liability
This process is likely to be protracted with no guarantee of success and is potentially complicated by
- Legal action taking a long time to get compensation
- The potential that builders or the design team are uninsured or inadequately insured
- The builders or design team have ceased trading
With Latent Defects insurance a property owner has the cover to remedy a defect whilst allowing them to focus on running their business.
Target Business
We are able to offer cover for buildings, which are
- New build commercial or industrial buildings i.e. supermarkets, stadiums and office complexes still in the planning stage and building has not started
- Under £50,000,000 in reinstatement value
If you would like to know more about how we can help or have any opportunities to explore, speak to your Norwich Union Account Manager or contact us directly.
