Commercial Latent Defects Insurance
LBB specialises in Commercial Latent Defects Insurance (LDI). Our team of experts helps clients secure the right cover and the best value for money.
The market has changed; we have access to what is now a much wider range of A-rated insurers—broadening your options while ensuring your policy requirements are met.
Protecting Your Investments
Protecting a development with effective coverage is vital, but navigating this complex landscape requires expertise in both construction and insurance—a demanding expectation for already overstretched procurement teams. Let us help.
Construction firm insolvency stats have strengthened the view of lenders and investors alike that any contractor, regardless of age and size, can be at risk in these uncertain times. As such lenders and investors should look to add as much protection to their investments as possible.
Commercial Latent Defect Insurance (LDI) provides an added and essential element of protection against the risk posed by a contractor’s refusal and/or inability to rectify major defects, and also extends this to the first 10-12 years of the asset’s life.
In addition to this, Commercial LDI can be extended to cover loss of rent as a result of a defect, meaning that investors’ returns can also be protected in this situation.
From architects to developers to housing associations, we have worked with professionals across the sector who have been involved in the construction of large scale residential and commercial developments, prime and super-prime residential, new build, conversion, and refurbishment projects.
Key Features
Transferability
Fully transferable to subsequent owners
Loss of Rent Coverage
Loss of rent coverage available
M&E & Rent Loss cover
Includes M&E loss and associated loss of rent
Sales Tool
Effective as a sales tool for a competitive advantage
Comprehensive Property Coverage
Covers all types of commercial properties, including student accommodation, PRS schemes, offices, shops, restaurants, hotels, care homes, retail units, cinemas, and bowling alleys
Long-Term Structural Protection
Covers building structure for 10 or 12 years
Download Our LDI Brochure
“Whilst a building is being constructed it will likely benefit from a Construction All Risks (CAR) policy that was put in place either by the contractor or the developer. Once the building has reached practical completion, this policy will fall away and be replaced by a property owners or building insurance policy, similar to a home insurance policy.”
