Commercial Latent Defects Insurance
Latent Defects Insurance and Performance Bonds (also known as Surety Bonds) are there to protect the owners of new commercial properties from defects discovered after completion and from breach of contract.
Why Do You Need Commercial Latent Defects Insurance?
Latent Defects Insurance can help to cover the cost of repairs or rebuilding if structural damage appears after the practical completion of a new-build or conversion project caused by a defect in design, workmanship or materials.
The damage can be hugely disruptive, costly and complicated, and could have a serious impact on your business.
The security provided by a latent defects policy can encourage investors and accelerate sales and lettings.
Companies in the construction and engineering industries often need to provide their clients with performance bonds (also known as surety bonds) and other third-party guarantees to ensure contractual obligations are met.
What Are The Two Types of Performance Bond?
On-Demand Bonds
Rarely used in the UK construction industry, but they are a standard requirement in many international contracts, as well as in the petroleum and power industries within the UK. They are usually provided by banks.
Conditional Bonds
Common within the UK construction industry. Generally issued by an insurance company, payment is usually conditional upon the employer who makes the call proving the amount of loss which he has suffered.
As your business grows and develops, your insurance needs will undoubtedly change. FOCUS will work with you to ensure that the exposure and risks faced by your business will be protected, leaving you with complete peace of mind.
If there is anything we can help you with in the world of commercial latent defects and performance bonds please do not hesitate to contact us.