Product offers up to £10m in latent defect protection
The Federation of Master Builders (FMB) has teamed up with reinsurance broker Aon Benfield to launch a new insurance policy for the UK construction industry.
The product, Build Assure New Home Policy, protects FMB members and general developers against financial loss arising from latent defects in new-build properties.
The policy, offered through FMB-affiliated insurance provider Build Assure, offers up to £10m protection per property. The product is not solely targeted at larger developments, which its backers say is a first.
The product has been structured buy Aon Benfield. It is underwritten by Argo Syndicate 1200 at Lloyd’s and global reinsurer Swiss Re.
The latent defects product provides market-standard cover to policyholders, plus a 12-month liability period in relation to structural defects. It meets the cost of rectifying errors in materials, design, workmanship, and specification, which are not apparent when the project is completed but which are discovered at a later date.
Build Assure director David Hill said: “More than 2,000 FMB members are involved in new build projects of various sizes, and we believe this product will be of enormous benefit to them, providing peace of mind and financial security should latent defects come to light after completion of the job.”
Aon Benfield account executive Kurt Cripps added: “In structuring this product, Aon Benfield has sourced the highest quality cover from the world’s leading insurance markets. Both Argo Syndicate 1200 at Lloyd’s of London and Swiss Re are hugely experienced in all types of liability cover, and offer the highest level of financial security available in the global insurance markets today.”
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