Property developers need a diverse range of insurance products to cover the various different aspects of their projects.
In this post we will explore the insurance cover you need as a property developer to ensure you are adequately covered for all risks. We will also discuss the benefits of choosing owner controlled insurance programme (OCIP) for your property development business.
Essential Insurance For Property Developers
Property development insurance policies should include cover for:
- Construction All Risks – Cover for physical loss or damage to the contract works, whether caused by fire, flood, or other incidents.
- Delay In Start-Up – If your project takes longer than expected, your clients could lose revenue, and could make a claim against you. Delay in start-up insurance provides cover for any financial loss following such delays.
- Third-Party Liability – Cover for any third-party property damage, or any third-party accidents or injuries, sustained as a result of your project.
- Public Liability – Cover for any damage to public property, or any accidents or injuries sustained by members of the public, as a result of your project.
- Existing Property – If the property development project is a renovation of an existing property, you will need cover for any damages caused to the existing structure stemming from your project.
- Employer’s Liability – If you employ any staff, you have a legal requirement to get employer’s liability insurance, to cover your workers for any accidents or injuries they sustain on the job.
Additional Insurance Property Developers May Need
Depending on the nature of your project, you may need some additional cover. Specialist property developer insurance products include latent defects cover and rights of light cover. For example, if your project involves repairing a church in England or Wales, you may have a legal obligation to get chancel repair liability cover.
Why You Should An Choose Owner Controlled Insurance Programme (OCIP)
Some property developers allow contractors and other third parties to arrange the insurance cover for development projects. This is a risky approach, as there is no guarantee that you will get all the cover you need. The best way to ensure your project has adequate cover for all risks is with an owner controlled insurance programme (OCIP).
This essentially means that the property developer has full control over the policy and the associated costs. This way, you can guarantee that you will have full cover for every aspect of your project. On top of this, the added control means you can get exactly the cover you need at the best possible price. As well as avoiding the risk of underinsurance, you will also avoid paying extra for any unnecessary overlaps in premiums.
Finally, getting your insurance on an OCIP basis can result in more straightforward claims processes. Often, it means you will only have to make a single claim on a single policy, and any payments will be made directly to your business.
Talk To James Hallam About Your Property Developer Insurance Needs
James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals. We know that no two property development projects are ever quite the same, and we are committed to getting you the cover you need at a price you can afford.
Talk to us, and we can help you ensure you have enough cover to protect your project, at a truly competitive price. We will take the time to understand your risks so we can tailor a flexible property developer insurance package that offers full cover at outstanding value.