BLP launches new generation of commercial property insurance
- Date: 28/05/2009
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 * 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 * 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.”