A new construction insurance policy designed to fill a long-standing gap in the market has been launched by national trade body the Property Care Association (PCA).
The PCA Structural Waterproofing Latent Defects Insurance will allow PCA members to offer their clients a performance-based insurance guarantee on the structural waterproofing of below-ground construction for commercial and mixed-use developments for the first time.
The new policy has been arranged for PCA members by specialist insurance consultancy LBB.
Specifically tailored to below-ground waterproofing works on larger and more complex developments, the policy allows an initial 24-month defect period for the installing contractor before liability transfers fully to the insurer.
The policy functions as a commercial basement guarantee, supporting due diligence and funding requirements for commercial and larger scale domestic residences, with no requirement to prove negligence and is backed by an insurer, following PCA quality assurance.
James Berry is Deputy CEO at the PCA. He said: “This policy delivers a major advantage to clients and investors and is designed with developers, investors and owners in mind.
“It covers latent defects not discoverable at completion, transfers to future owners and aligns with current best practice waterproofing standards.
“Conventional basement guarantees are usually only available in the residential sector, so being able to offer a policy that meets the needs of commercial, mixed-use and developer-led projects provides a new level of reassurance.”
The PCA Structural Waterproofing Latent Defects Insurance is only available to PCA audited members who hold the CSSW qualification and are listed on the Waterproofing Design Specialist (WDS) register, reinforcing competency, best practice, quality delivery and professional accountability across the sector.
Alex Lyons, Commercial Director at LBB, said: “Commercial and mixed-use basement schemes have historically lacked access to the same long-term protection available in the residential market, despite often carrying far greater complexity and stakeholder scrutiny.
“This new policy has been designed to bridge that gap, giving developers, funders and asset owners confidence that specialist waterproofing works are backed by both robust technical standards and long-term insurance protection.
“By partnering with PCA, we’re helping raise standards across the sector while providing a practical solution for increasingly sophisticated development projects.”
