Construction defects insurance specialist BLP today announces the immediate availability of its new upgraded product: BLPASSET – a greatly enhanced latent defects insurance which gives protection and fast resolution for all stakeholders should problems occur in commercial and mixed use new build or refurbishment schemes. BLPASSET is backed by Allianz Global Corporate and Specialty AG, UK Branch (AGCS).
“We’ve listened to the market place and this is good news for all stakeholders in the construction sector because BLPASSET brings together a breadth, depth and inclusivity of latent defects insurance cover that has never been available before in one place,” says BLP’s Managing Director, Simon Main. “It’s highly significant that we’ve included the highest Limit of Indemnity in one policy from only a single insurer as well as mechanical and electrical and component failure cover.”
Main explains: “BLPASSET has been designed to respond to proof of defect, not proof of fault. It protects stakeholders by insuring the building rather than the liabilities of developers or consultants, and provides a simple, speedy and effective remedy irrespective of who may have been at fault, or indeed whether a responsible party is still around. The risk management process follows the building through every stage of construction and the insolvency of a builder, developer or contractor mid-project would not affect the availability of cover- so, this product is particularly significant in the current economy."
“This new breed of inclusive insurance resolves, in the most transparent way, the major drawbacks and weaknesses that previous legislation and insurance products were unable to. You could certainly say it provides the missing link in the commercial insurance chain. It cuts through the contractual spaghetti that can really dog new projects. It also simplifies the whole investment/build/let process while actively protecting interested parties…this is a product to take some of the weight off stakeholders’ shoulders. It does not require proof of fault, just discovery of defect.”
“And there are further benefits,” he continues. “BLPASSET paves the way for more collaborative working across the board. It enables developers and contractors – including designers and architects – to make a start on new projects with greater confidence because they are less exposed to claims. And for legal advisors and property consultants, it eases the process of clarifying the rights and obligations of the respective clients. Investors, owners and landlords benefit by having more marketable properties with a better return on investment – and tenants can see a more certain and immediate solution to repair disputes.
“BLP and AGCS have worked closely to optimise the costing of this new product; BLPASSET costs around just one per cent of the building reinstatement value and it offers structural and non-structural cover. The building is covered for up to twelve years from completion.
Main concludes: “The feedback that we are getting from the marketplace is very positive. We are able to offer this improved kind of cover because of our solid, long-standing commercial insurance expertise and because of our rigorous application of quality assessment on every risk. It is not a replacement for other types of key insurance - it works in a complementary manner to ensure that all stakeholders are fully covered in the best possible way. This insurance certainly offers all stakeholders a win-win situation.”
In the United Kingdom, until now, the resolution of problems caused by latent building defects has not been straightforward. Where there have been disputes, a claimant had to prove that a developer/contractor was in breach of their obligations. Even if the developer/contractor was held liable – they might not have been able to pay due to insolvency/bankruptcy. Despite developments such as The Contracts (Rights of Third Parties) Act 1999, and the existence of general collateral warranties and professional indemnity insurance, stakeholders have not been able to protect themselves fully as these all included many exclusions or restrictions. The same was true for previous generations of latent defects insurance.
Now BLP brings a first to the UK commercial marketplace with its new generation BLPASSET latent defects insurance policy which does not require proof of fault, just discovery of defect. The cover is particularly inclusive because it means that there is reduced exposure to collateral warranties and to the approval of settlements by professional indemnity underwriters.
The BLPASSET insurance policy is underwritten by AGCS. Cover includes the costs of putting right structural damage, demolition, legal and professional fees as well as costs related to compliance with new regulations relating to design and construction. Optional loss of rental income can also be covered as well as removal and storage costs, relocation and alternative accommodation. It covers key stakeholders: investors, developers and contractors, owners and funders, landlords and tenants, designers and architects, legal advisors and property agents. Any one of these groups can apply for cover.
About BLP – the construction defects insurance specialist.
BLP (blpinsurance.com) is the standard setter in the UK market place for new building and refurbishment defects insurance and technical expertise for residential, commercial and mixed use schemes.
The insurance covers the property not the developer. And BLP carries out a unique quality assessment on every risk – be it residential or commercial.
Unlike other providers BLP arranges cover from day one; does not require bonds or indemnities; and does not require proof of liability – just proof of damage.
Building LifePlans Ltd was incorporated in 1999, known now under its trading name of BLP, and is headquartered in the City of London. BLP is a subsidiary of Thomas Miller. BLP is regulated by the FSA and is backed by Allianz Global Corporate & Specialty AG (UK Branch), with an insurer financial strength rating of AA.
Known for its quality products, professionalism and technical expertise, BLP has established strong and long-standing relationships with a wide range of customers which include: architects, designers, contractors, builders, housing associations, landlords, tenants, property developers, property consultants, property lawyers, investment bankers and pension fund managers.
Its customer list includes the following organisations: Scottish Widows Investment
Partnership, Catalyst Housing Group, Newlon Housing Trust, McCabe Builders (UK) Ltd,
Highgrange Homes Ltd, JLP Homes, Oakdene Homes plc and The Elegant Group Ltd.
About Simon Main, Managing Director, BLP
Simon comes from a solid background in international project management and insurance. He was appointed Managing Director of BLP in 2003. Prior to this he worked for Thomas Miller, BLP’s parent company, which he joined in 1984. Simon has an MA in Economics from the University of Edinburgh and an MSc in Organisational Consulting from Ashridge.