What is commercial latent defects insurance?


There is a tendency to only think of residential properties when it comes to structural defect warranties, but the reality is that any kind of building, conversion or structural development that is used for business purposes can benefit from insurance cover, which is where commercial latent defects insurance comes in.

Whether it’s an office building, a distribution centre, a retail unit or even a school, any commercial building needs protection against the possibility of latent defects coming to light. The consequences of not having this kind of cover can be significant costs to the building owner for remedial work.

Commercial latent defects insurance, sometimes called commercial scheme insurance, covers the building itself, rather than being a warranty on the construction work, which makes the claim process more straightforward, if it’s needed. This is because there is no proof of negligence needed to claim, simply proof that there is a structural defect causing the problem.

This kind of cover being in place can be attractive to potential tenants or buyers too, which can help to give a competitive advantage over other options that might be available to them.

A commercial scheme insurance policy covers:

· The building components

· The building’s mechanical and electrical services (which includes things such as the building’s energy distribution and control systems)

· Business interruption, to cover rental income and relocation expenses if the tenant needs to move to a different building

Ensuring that you have the right level of cover for your specific commercial building is important, as you don’t want to be paying for elements that you don’t need or be lacking cover in areas that do matter to your circumstances. As specialists in construction and building insurance, our team can help ensure that you get a great fit in the policy you choose.

Get in touch using the online contact form if you’d like a no-obligation commercial latent defects insurance quote.

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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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