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Defects warranties and guarantees have always formed an important part of risk management on new-build commercial projects. Ensuring the defects insurances compliment the contractual warranties is crucial in providing maximum protection to owners, funders, and future purchasers. At BLG we have unrivalled experience in ensuring the insurance protection benefits developers, funders, and owners.


An interesting, and of course key, element of the construction of these buildings is the scale. Though the construction methods themselves are generally fairly standard and traditional, the size of the buildings is the real challenge.

Huge open spaces are required to maximise the storage and access capabilities within these properties, with lengthy roofspans and internal supports kept to a minimum. This presents an interesting challenge to project managers and architects, which is now a well tried and tested feature of these buildings which we are familiar with.

Providing ten and twelve year Latent Defects Insurance (also known as Inherent Defects Insurance) forms a key part of any project and gives peace of mind to the future occupiers who do not want lengthy disputes and issues in the event of a defect. They want it remedied quickly and these occupiers tend to be large blue chip household name companies with a very thorough approach to risk management – which specifies this type of insurance be in place.

Funders and Pension Funds

Defects insurances can be an essential part of providing investors, purchasers, and funders with the comfort that damage from inherent defects will be rectified.  The insurance complements the traditional collateral warranties by providing first-party insurance with no requirement to prove negligence in order to recover repair costs.

A significant risk with traditional collateral warranties is that the party providing the warranty ceases to trade.  This risk is managed by the provision of an insurance policy to protect against inherent defects.

Some funders impose requirements for defects insurance and we can help ensure the policy meets those requirements.

Loss of Income

Importantly, such a policy can also include loss of income due to a defect, providing security for all involved. Business Interruption is something that most companies obtain to cover events such as fire/flood etc, but you should also be looking at having this cover on your Latent Defects policy. We will help with this.

How can we Help?

Complete the Quick Quote Form, or drop us a note or a call. We will be happy to work with you to put the cover in place that you need – this is what we do.

BLG House, 86A High Street Whetstone, Leicestershire, LE8 6LQ

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