Latent Defects Insurance

Latent Defects Insurance

• A 1st for Australia – SHC has sourced this special product on behalf of its clients and the Australian construction industry.
• Transfer Defects risk and rectification costs off your balance sheet to the insurance company.
• Builder held harmless – cannot be held responsible and pay (no liability).
• Commercial or Domestic (any size).
• Cover for; Builders, Developers, Owners and Strata Body Corporates.
• Cost Effective Insurance.
• No personal guarantees.
• Simple Application and Process.
• Cover up to $10m per project (more on application).
• Cover up to 10 years.
• Great Security – Lloyd's of London.

This insurance product is the first in Australia that can cover the risk of costs associated with rectification for Latent Defects. Currently the Builder and Developer bear the entire risk and cost should something go wrong which can have serious repercussions and adverse effects on their Balance Sheet, profitability and financial position. This product allows the transfer of that financial risk onto the insurer for the amount of the Sum Insured.

For Commercial Construction (including all High Rise) the need for Latent Defects Insurance is obvious (see Case Study below). For Domestic Construction the need for this insurance also continues to be obvious to any builder who has previously borne the cost of rectification works. Statistics show that 1 in 8 houses require rectification at an average cost of 4% of the total contract value – all currently paid by the builder.

Case Study - Opal Towers Sydney

Insure yourself out of the financial cost presented by Opal Towers, Sydney.

Excerpts from The Urban Developer Jan 21, 2019 

"The newly-built 36-storey Sydney apartment building was evacuated on Christmas Eve after cracking in precast concrete panels was discovered on level 10, sparking fears that the tower could collapse. More than 300 apartment owners and residents face further months of uncertainty while others have been allowed to return to the building."

The saga has sparked widespread concerns about the quality of new developments and the approvals process behind high-rise apartment complexes in Sydney and across Australia.

Many commentators have highlighted a “systemic” problem rife throughout the industry and have blamed Opal Tower's failings as the result of the privatisation of building certification. Poor building practices continue to undermine confidence in the multi-billion-dollar construction industry, the strata management industry and in the planning system.

Engineers agreed the building was “structurally sound” but that “significant rectification works” were required to repair the building - to read the article in the Urban Developer

In the four months since the mass-evacuation, the Developer has spent more than $10 million reimbursing residents for accommodation and living expenses since December 31, according to the Developer’s spokeswoman.

Don’t be caught out ever again without purchasing this insurance from SHC Insurance Brokers – please use the Link below to register your interest in Latent Defects Insurance or call Brett Graves (Director) or Richard Durnell (Executive) on 1300 550 665.

Register now

SHC Offering Large Rebates on
Portfolios including the following;

Construction Insurance
SHC is currently promoting its insurance services and products on all policies and portfolios, especially with Contract Works and Liability. SHC is one of Australia’s largest brokers for this class of insurance business. Married with the substantial cost of Home Warranty Insurance (if your company operates in the residential market), SHC is perfectly placed with all Insurance Companies to review and place your portfolio.

If your company has never engaged SHC to review your insurances, chances are that you are paying too much and/or not extensively covered. As you tender out most of your work, why not tender your insurance portfolio to SHC – it costs you nothing (but a little time…). We make it very easy for you!

Professional Indemnity Insurance
The largest insurance cost for an Engineer and/or Architect is their Professional Indemnity Insurance (PI). PI insurance and other related Insurances are a specialist area of insurance which is often not well understood by general brokers. This includes reviewing policy wordings, clauses, endorsements and extensions.

We frequently widen standard policy coverage on behalf of our clients and arrange bespoke policy wordings at more competitive premiums. We also regularly review insurers to assess premium levels, claims handling performance, cover offered and financial strength. Because we access PI from the whole market, including international insurers (Lloyds), we place our clients’ business with strong insurers often at below market rates. 

If your company has been experiencing a steady creep, or indeed in some cases a large increase in your premiums for the same covers, you are probably overdue a review. Unless you ask SHC to review your insurance covers, how do you know you are receiving the best outcome? Join the masses of clients in your field that use SHC for very good reasons.

Get in touch today by calling 1300 550 665 for a quick and easy response concerning your insurances. You won’t be disappointed.

Contact SHC