With ever-changing innovations in technology and building materials, added to the pressures from Government regulations and public demand, the construction market is one of the most intricate industries and it is absolutely crucial to source professional advisors who understand the technicalities and complexities arising from this industry.
Reich has a number of dedicated construction experts covering a wide section of insurance specialties and we have a proven and robust reputation in the market. We recognise that each client in this sector is unique, with varied requirements, so we make it our priority to understand your needs, ensuring that the service we offer is tailored accordingly.
By effectively utilising our industry specialists, we have designed a construction proposition which enables us to assist with any insurance product relating to construction, which is totally unique. We also have incomparable, direct relationships with the majority of the specialist construction insurers, which puts us in a great position to negotiate the most comprehensive terms available for you.
Some of the products we can help with include:
Latent Defects Insurance (Structural Warranties)
Provides cover in the event of inherent defects post completion due to poor design, faulty workmanship or materials. Polices can be provided for both new build and conversion developments and usually run for 10 years (with an initial 2 year Developer liability period). Cover can be provided for a number of development types across various fields, including commercial, residential, private rental and housing association developments.
Contractors All Risk (CAR/Contract Works)
Usually taken out by either a main Contractor or a Developer (employer) to protect the interest of parties involved in a construction project against physical loss or damage to the works being undertaken. Policies can be provided on an annual blanket basis or a project specific basis. Project specific policies can be extended to include existing structures and cover can also be extended to included protection against loss in profits or loss of rent as a result of a delay caused by an insured peril.
Terrorism (During Construction)
Often required by banks and lenders, cover provides claims as a result of acts of terrorism or sabotage causing physical damage to any new works undertaken. Cover can be extended to included protection against loss of profits or loss of rent as a result of any delays caused by an act of terrorism or sabotage.
Right to Light Indemnity (RtL)
A type of Legal Indemnity to cover for costs and expenses associated with claims and/or objections as a result of loss of light to neighbouring premises. Rights to Light claims are just one of many potential real estate legal pitfalls that can add substantial costs and delays to a development project. Developers can manage or cap their exposures with Right to Light insurance as part of an overall risk management strategy.
Public and Products Liability (PL)
Insurance to cover your legal liability in respect of personal injury or property damage to third parties as a result of your business activities or products supplied.
Non Negligence Liability (JCT 6.5.1 or equivalent)
JCT Contract Conditions require such insurance to be arranged to protect the Employer (Property Owner) in respect of their legal liability for damage to adjacent or surrounding property. Provides cover for expense, liability, loss, claims or proceedings that arise due to non-negligent injury or damage to any property while undertaking a building contract due to collapse, subsidence, heave, vibration, weakening or removal of support or lowering of ground water as a result of the work undertaken.
Employers Liability (EL)
Provides protection against the cost of compensation claims arising from employee injury or illness sustained as a result of their work for you. It is legally required if your business employs one or more people.
Plant Tools and Equipment including Hired in Plant
Cover for own plant tools and equipment whilst on site, in transit or at specified premises. Cover can be extended to include employees tools where required. Hired in Plant is usually insured under CPA conditions or similar but insurance can be amended to match the hiring conditions of the hirer where cover is available.
Professional Indemnity (PI)
Insurance designed for professionals who provide advice or specific services to their customers. PI protects against legal costs and claims for damages to third parties which may arise out of an act, omission or breach of professional duty. Specific policy wordings are available for key trades such as solicitors, design and build contractors, surveyors and architects.
Insurance contracts relating to legal and transactional problems affecting or arising from real estate, as well as other assets. This includes title insurances, restrictive covenants, lack of adequate access and/or services, easements, judicial review (and other planning and building regulation issues) and lost documents.
Highway Act Bonds (Road and Sewer) - Normally in favour of the Local Authority to ensure that statutory obligations in relation to the construction and maintenance of roads or sewers are fulfilled. Performance Bond - A guarantee to an employer for the performance of a contract by the nominated contractor in accordance with their terms and conditions. Deposit Guarantee - Main Contractor arranges and in return the Manufacturer/Supplier provides a bond to the Main Contractor to guarantee the Payment in the event they do not produce the product. Supplier Payment Guarantee Bond – Guarantees a manufacturer (Beneficiary) that the money owed from the purchaser (Client) will be paid in the event that the purchaser (usually a main contractor) ceases to trade. Advance Payment Guarantee - A Main Contractor advances the Payment of the product to the product Manufacturer. The product Manufacturer provides an Advance Payment Guarantee to the Main Contractor to state they will use the advanced funds for the Manufacture of the agreed product. Retention Bond - Often construction contracts may entitle the employer to withhold a percentage of money due to the contractor from each payment. A bond can be issued in place of money that would otherwise be held as retention enabling the contractor to receive the full amount due and improve their cash flow.
Insurance Backed Guarantees (IBG)
A policy aimed to fulfil the contractors written guarantee to their clients in the event the contractor has ceased to trade and problems arise with the completed works.
A Crime Insurance policy is designed to cover against fraud and dishonesty. Policies can also be extended to include losses for reputational damage and defending third party accusations of employee dishonesty.
Cyber Insurance is an insurance product used to protect businesses and individual users from online based risks and generally from risks relating to information technology infrastructure and activities. Cover can be extended to include Cyber Crime, Cyber Extortion, Incident Response, Media Liability, Privacy Liability, Reputational Harm, System Business Interruption and System Damage.
Directors and Officers Liability (D&O)
Insurance coverage intended to protect individuals from personal losses in the event they are under threat of legal prosecution as a result of serving as a director or an officer of a business. This applies to both profit organisations and non-profit organisations for losses or reimbursement of defence costs if a legal action is brought against them. Cover can be extended to include Corporate Legal Liability for claims made against the organisation either separately or jointly with the director. Cover can also be extended to include Employment Practices Liability to cover for any financial consequences in defence of claims for any employment related lawsuits.
Property Owners Liability for vacant plots of land
Suitable for vacant plots of land or property whilst awaiting development commencement and provides cover for claims against slips trips and falls on the land by third parties.
Contractors Pollution Liability
A contractor based policy that provides third party coverage for bodily injury, property damage, defence clean-up and related defence costs as a result of pollution conditions arising from specific contracting operations performed by or on behalf of the contractor.
Environmental Impairment Liability (EIL)
Insurance coverage for liabilities associated with unforeseen environmental damage or pollution arising from your past or current operations, where you retain a legal liability. Cover typically includes claims for clean-up, bodily injury and property damage arising from pollution.
Credit Insurance provides businesses with protection against non-payment for the sale of goods or services. In the event one of your customers becoming insolvent or in the event of a payment default, a Credit Insurance policy provides replacement funds.