Property owners and construction professionals will know that building defects can become evident long after practical completion. The “sick building syndrome” caused by latent defects can result in unbudgeted expenditure, jeopardising the availability of funding for future projects, and in undue demands on management time in rectifying the problems.

QANW’s Latent Defects Insurance takes a quality driven approach to protect the investment in the construction project. It seeks to eliminate or minimise the potential for defects to occur by carrying out technical audits during construction. Quality controls involve the auditing of designs, systems, materials and contractors supported by work-in-progress inspection regimes.

Latent Defects Insurance protection can be arranged for the construction of new commercial and industrial buildings, refurbishments and certain elements such as cladding (including external insulation) curtain walling, glazing, rendering, asphalting, roofing and car park decking, in isolation or in combination. It can also be considered for extensions and conversions.

The emphasis on quality is supported by long-term insurance security that maintains its value over time. 10, 15 and 20 year single premium index linked policies are available for most projects. The minimum contract value is £20,000. Insurance Backed Guarantees are available for contracts below this threshold, subject to status.

A Latent Defect is one which remains undiscovered at the date of practical completion but manifests itself during the period of insurance by way of actual physical damage. Latent Defects Insurance is a form of insurance that meets the cost of rectifying defects in materials or workmanship and errors or omissions in design or specification which are not apparent when the job is finished but which come to light later.

See our apply for cover page.

For information about our costs please call 0845 838 8550

For projects £50,000 and over and underpinning contracts £25,000 and over, a technical inspection is required. The cost for this will be dependant on the following factors:

• Work Type
• Contract Value
• Duration of the job
• Location

Please note the audit should be instructed before significant works start on site to allow the auditor to carry out a full and effective role. Where a full inspection is not possible the Insurer may consider the application as an increased risk and additional terms will apply to the premium rate and policy excess.

Please contact us on 0845 838 8550 for a quotation for the technical audit fee.