Insuring the modular developeron
Insuring the modular developer
Working in conjunction with your insurance broker and insurers upfront can help address the concern of using modular construction. The use of Modern Methods of Construction (MMC) is an important feature which should be disclosed to insurers who may require additional precautions to be undertaken.
If the use of MMC has not been disclosed to the insurer, they are within their rights to impose a rateable settlement in the event of a claim or, even worse, avoid the policy which could potentially leave Property Owners or Developers significantly out of pocket.
As experts in the construction sector, we appreciate the significant value which MMC can bring, but we are also aware of the potential increase in risk. We work with our clients to actively look to identify potential exposures, especially when it comes to MMC.
For example, the risk of completed modules themselves being damaged in transit is much more crucial than standard materials being damaged, as it would ultimately result in longer delays to the programme. Assuming that there would be cover within the Delay in Start Up (DSU) extension of the project insurance programme can be a mistake, as this may not be the case.
Having an expert broker on hand, who understands the sector, your needs and your programme is a fundamental factor to ensuring your site is protected comprehensively.
Contact us today for expert advice from our dedicated Construction team: