Protecting your construction investment for the long term

Protecting your construction investment for the long term

Managing a refurbishment or a new construction project is an expensive and complex process for any social care business. Before any building work begins a business will be exposed to a new layer of risk management requirements that they don’t usually face. These new risks bring in new insurance requirements. Using our experience of over 20 years of providing Social Care businesses with specialist insurance solutions; these are the following policies that we recommend any organisation to consider ahead of beginning any project.

Advanced Loss of Profits (ALOP) Insurance

Advanced Loss of Profits (ALOP) Insurance offers coverage for lost profits due to project delays caused by an insured event, such as a fire, flood, or other disruptions. Unexpected delays can put a significant strain on your revenue projections, but ALOP ensures that your financial health remains intact, so you can focus on completing the project.

Key Benefits:

• Compensation for financial losses due to insured delays
• Safeguards profits against unforeseen project disruptions
• Mitigates the risks of income loss from delayed openings
• May support contractual agreements to start repaying borrowings for the development

Ensure your financial security, even in the face of delays.

Rights to Light Insurance

Do not let legal claims cast a shadow on your project. Rights to Light Insurance covers potential legal claims made by neighbouring properties whose natural light might be obstructed by your development. These claims can result in delays, legal fees, or costly redesigns, with this coverage, you can proceed with your project confidently, knowing that you are protected from such claims.

Key Benefits:

• Protection from neighbour disputes over natural light
• Mitigates legal costs and compensation claims
• Keeps your project timeline intact

Environmental Liability Insurance

Environmental Liability Insurance covers the costs associated with pollution or environmental damage that may arise from the construction or operation of your care home or project site. It is not just about building responsibly; this policy protects you from the financial impact of accidental contamination or regulatory fines.

Key Benefits:

• Covers pollution clean-up and legal fees
• Compliance with environmental regulations
• Protection from financial risks tied to environmental damage

Latent Defects Insurance (LDI)

Latent Defects Insurance provides critical coverage for structural defects that may not become apparent until after your construction project is completed. Whether you are building care homes or any other property type, LDI ensures that unforeseen defects will not become costly problems later.  With coverage lasting up to 10 years, you can rest assured that your project will stand the test of time, free from hidden defects in design, workmanship, or materials.

Key Benefits:

• Comprehensive coverage for structural defects
• Protects against costly post-completion repairs
• Long-term peace of mind for up to a decade

Contractors' All Risks (CAR) Insurance

Complete protection for your construction site. Contractors' All Risks Insurance provides essential coverage for physical damage to your construction works, materials, and equipment, from start to finish. Whether it's damage from fire, theft, or vandalism, this policy ensures that your project remains on track, even when the unexpected occurs.

Key Benefits:

• Coverage for material, equipment, and construction works.
• Protection from fire, theft, vandalism, and more.
• Ensures swift recovery from on-site damages.

Is your existing cover significant enough?

Another key aspect to consider before starting any project is to understand what your insurance policy covers you for as not all risks will be automatically included. We would always recommend that you discuss this with your insurance broker. If your broker has not discussed these risks with you then we would recommend looking for a second opinion elsewhere.

At Howden, we understand the complexities of construction projects, especially when it comes to care homes and other residential developments. Our range of insurance products ensures that your project is protected from start to finish. Let us help you manage risks so you can focus on delivering quality care and excellence in construction.