Property development insurance

Why do you need property development insurance?

As a property developer, if you’re relying on insurance cover that has been arranged by someone else such as a contractor, can you be sure the cover is adequate for your project?
If you're planning a new build or other significant construction project, we would normally recommend an employer controlled insurance programme (ECIP).


How our property team can help

Our risk management advice and insurance solutions for property development and construction projects can include:

  • JCT contract conditions for both the principal and contractor owner controlled programmes
  • Delayed start up, advanced profits and advanced rent
  • Legal indemnities (for rights of way or defective title and more)
  • Project specific liability and professional indemnity covers JCT 6.5.1 – non negligent collapse
  • Latent defects
  • Restricted covenants

Property development insurance, what's included?

Cover arranged by the employer provides control over the policy, costs and ensures claims are paid directly, instead of passing through the contract chain to contractors and sub-contractors.

Our employer controlled insurance programme (ECIP) can include:

  • Contract works - all risks of physical loss or damage
  • Existing property - all risks or specified perils to the retained/existing structures
  • Increased costs - cover for increased costs on the works/or works not complete after damage
  • Delay in start up - includes loss of rent, profit and interest after damage to the works
  • Public liability - cover for owner/employer/project manager only
  • Non negligence JCT 6.5.1 - cover for all parties can be arranged if this clause is applicable in your construction contract

We can also help with assessment of the risk, broking, negotiating with lenders and advisers, preparation of evidence of cover and policy documentation. During the assessment it may become clear that the following covers are advised:

  • Rights of light cover
  • Latent defects cover
  • Contingency covers including chancel liability, defective title and restrictive covenant