A Quick Guide To Sewer Bonds Insurance


Sewer bonds are specialist surety bonds that relate to sewerage being built for a property development. As the sewerage pipes in the development and under new roads etc are put in place by the development contractors, but become the responsibility of the relevant water authority once the project is completed, there needs to be an assurance in place that the work has been done to the required standard. This is what the sewer bonds insurance guarantees. If this is found not to be the case, then the bond will pay out for the work to be rectified.

The developer will be aware of the standards of work needed and specific details of what is required by the water authority responsible for that geographical area and agrees to hand over the works to meet these requirements.

As there often are with construction projects, there may be some snagging needed, but once the water authority is satisfied with the work done, they will take over responsibility for the sewerage related to the development. This will include future maintenance and any repairs required that fall outside the period specified in the sewer bond.

In addition to the eventuality of the work being done falling below the standards required, the sewer bonds can also cover issues such as the developer going into liquidation during the build or otherwise failing to complete the sewer-related part of the project as specified. This could include missing a deadline or a completion date if it results in costs to the water authority.

Every development project is different and has its own set of circumstances and challenges, which is why it’s important to have a team that understand construction insurance and sewer bonds in your corner. Our team can help you get tailored cover for your build, including road and sewer bonds insurance. Contact us to find out more or to get a quote for your project.

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Advantage Home Construction Insurance (AHCI) provides structural defects insurance – operating nationally with offices in Warrington, London and Birmingham – offering development-related insurances and a service designed to give customers peace of mind.

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