COMMERCIAL PROPERTY Improving asset value with building defects insurance

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1 Improving asset value with building defects insurance

2 The need for defects insurance BLP defects insurance benefits all stakeholders because all parties are covered in the policy The impact of building defects affects your ability to maximise asset value All developers and commercial property investors may be looking to: Protect property asset value from building defect liability Have an easy, customer friendly and no hassle response to repairs Protect rental income and any relocation cost that arise as a result of Business Interruption due to repair of defects Protect against failure and repair of structural elements, mechanical and electrical (M&E) services and other internal and external building components Ensure that design, construction and workmanship failings are insured Ensure equitable landlord and tenant rights to facilitate the negotiation of repairing and non-repairing lease terms Minimise the need to make collateral warranty claims Minimise the need to make Professional Indemnity claims Ensure commercial and mixed use developments have defect insurance with an appropriately high limit of cover BLP commercial property defects insurance can help meet these objectives We make it easy all the risks of defects on a project can be transferred to a single insurance policy that protects the whole construction team. Cover can be extended to include M&E services and Component Failure (CF) resulting in the most comprehensive cover in the market. BLP is the exclusive partner of Allianz Global Corporate and Specialty SE UK Branch (AGCS), for handling M&E services and CF cover. Long-term benefits with a BLP policy include: A 1 st party insurance policy with high cover limits that immediately responds to claims for building inherent defect repairs for up to 12 years A policy that can maximise value and minimise the liability for repairs in the lease as the landlord and tenant can both be insureds named in the policy The option to significantly reduce the need to legally enforce collateral warranties or make claims against a contractor s Professional Indemnity insurer by claiming against the building defect insurer A no hassle response to making repairs as the insurer pays Long-term security as it is underwritten by AGCS, which has an AA financial security rating and is part of Allianz SE, one of the world s largest insurers Access to BLP s technical component database to help in assessing component life, maximising durability and minimising repairs Insurance cover designed to suit the specific needs of the developer and the project Cover Structural includes external cladding CF includes internal fittings M&E services such as lifts and heating, ventilation and air-conditioning systems Business Interruption covers rental income and relocation expenses when necessary A Waiver of Subrogation Rights can be added to the policy for the benefit of all the professional and construction team involved in development

3 BLP works for people like you our special cover takes care of all stakeholders All the stakeholders in the project benefit from BLP s insurance solution Funders it protects and boosts your investment Creates a more secure investment Protects asset value Protects income stream in the event of temporary loss of rental income Provides an insurance policy that is underwritten by AGCS, part of one of the world s largest insurers Tenants it gives you peace of mind Less exposure to repair liability within a Repairing Lease Direct access to an insurance policy for repairs Immediate settlement of repair disputes Access to cover for Business Interruption and alternative accommodation and expenses Protects repair contingency fund Owners and Landlords it gives you a more marketable property Creates a more leaseable property Protects rental income and asset value Can help to secure anchor tenants Helps to secure better lease terms for tenants and ease negotiations Gives protection to tenants by providing security and recourse for repairs Improves the saleability of the property as it comes with quality assurance backed by insurance Means there s less need to revert to collateral warranties and PI Insurance Contractors and Designers it gives you an easier solution Less exposure to collateral warranty and PI claims Less need for bonds and high limits of liability in client contracts Protection through insurance Waiver of Subrogation Rights Enhanced build quality through access to BLP s audit and defect avoidance regime Professional Advisors it gives you a cleaner solution All your clients can be brought under, and protected with, the BLP and AGCS insurance solution Provides a clearer remedy to latent defect problems through insurance Less reliance on enforcing collateral warranties and PI Insurance Can secure a higher limit of liability for building defect repairs Can enhance landlord/tenant and contractor negotiations

4 Why choose BLP? All BLP policies offer financial security BLP are the construction defects insurance specialists BLP s cover protects commercial and mixed use developments BLP is the only company to offer the most comprehensive building defects cover with a single insurer Choice BLP will design insurance cover to suit the individual needs of each developer and their project. BLPASSET is a commercial property insurance product that offers protection to all stakeholders with an interest in the defect-free construction of commercial property schemes. This includes landlords, tenants, funders, contractors, builders, designers and architects, legal advisors and property consultants. Claims are payable on discovery of defect, and do not require proof of negligence. Additional inclusion of the whole of the construction team means that there is reduced exposure to collateral warranties and to approval by ProfessionaI Indemnity underwriters. The product offers up to 12 years cover for structural defects, M&E services defects and premature failure of building components including M&E items. It can be extended to include protection for loss of rental income, alternative accommodation costs and relocation. Quality BLP uses its own customer friendly audit process. All audits and technical assessments are managed in-house using BLP s own unique audit system, and customers have access to BLP s team of experts. BLP is also an accredited provider of defect insurance for buildings constructed using modern methods of construction (MMC). BLP has developed the industry s only database of component information that can be used to check component durability and quality. This is important where the building s Whole Life Cost is an issue, for example, where ongoing maintenance and repair costs have to be kept to a minimum. Each insurance policy is underwritten by AGCS part of Allianz SE, one of the world s largest insurers; an insurer with an AA financial security rating. Flexibility BLP adopts a non-prescriptive approach to auditing, building standards and on-site workmanship requirements. The developer can choose to design to any good design and building practice standard. BLP is also pleased to provide a bespoke insurance policy service for larger commercial developments. Insurance Excellence Competitively priced insurance to suit your needs BLP can provide competitively priced insurance to suit your individual project needs. Additional cover for M&E services and other component elements unique to BLP In addition to the main structural elements, building components such as lifts, HVAC systems, cladding materials and other service components can be covered. Joint residential / commercial property cover Many developments now combine commercial and residential use. By providing cover under one insurance policy, with high cover limits, the different elements of the development can be properly covered with a single insurer. Financial security AGCS has an AA financial security rating The security of any long-term insurance policy is an essential requirement. Technical Excellence A flexible approach to auditing and building standards BLP has its own in-house technical team, its own computerised audit system and its own experienced site inspection staff. BLP adopts a flexible approach to building standards and onsite workmanship requirements. Each development receives an Audit Certificate Each individual project is audited by BLP. All of the design, materials and components are independently assessed. At the end of the audit process BLP confirms completion of the audit by issuing a Certificate of Approval. Access to BLP s industry expertise in life cycle costing and durability assessments This can help the design team improve durability and reduce the overall cost of the building while helping to meet a life cycle agenda. For more information visit Provision of this information does not constitute an offer of insurance or other service by BLP or AGCS

5 BLP gives all stakeholders choice, quality and flexibility with our unique commercial property defects insurance. Contact BLP now 1. Call us on Visit 90 FENCHURCH STREET LONDON EC3M 4ST BLP is an underwriting agent of Allianz Global Corporate and Specialty SE (UK Branch) and is authorised and regulated by the Financial Conduct Authority, number BLP is covered by the Financial Services Compensation Scheme. Registered in England No Registered office: 90 Fenchurch Street, London EC3M 4ST. All quotations and insurances are subject to terms and conditions. CB