Commercial Builders take note!
From 1st July 2014 it is no longer be a requirement for commercial builders to take out a commercial structural defects insurance policy to maintain their builder registration.
 
Should you continue to purchase this insurance?
 
The Commercial Structural Defects Liability insurance is a unique insurance product. It is not like the domestic warranty where the insurer will seek recovery from the builder of any claim they have to pay. It is more closely aligned with a professional indemnity insurance policy arranged to protect the assets of the engineer, architect, building surveyor etc. 
 
The policy provides real benefit to the builder.
 
If there is a mistake made by you that causes a structural failure in a building that is not identified until after it has been completed then the policy will provide you with protection and deliver the compensation to the consumer rather than you having to dig into your own financial resources.
 
Without this insurance in place if you are dragged into legal disputes, you have to carry the cost of your legal defence. This policy would normally cover these expensive legal bills.
 
So should you continue to purchase the insurance? 
 
Yes! 
 
The cost of the policy is a fraction of what is paid by engineers etc for their professional indemnity insurance and yet it not only covers you against your negligent design and management of the work but also your defective hands on workmanship.
 
If you decide to stop protecting yourself you will be throwing away insurance protection for all that work you completed whilst you had this insurance in place – this could be up to the last 10 years of work. Can you afford to take the risk of self-insuring the last 10 years of your work?
 
BRIC will send out to you an Expiry Notice and will provide renewal quotations for you. However, if there is an insufficient take up of the renewals, the insurer may withdraw and we lose this valuable protection. It is important that you support its continuation to maintain protection for the work that you have previously completed over the past 10 years and which is now insured by your current policy.
 
Please call us if you wish to discuss your individual need for this insurance when your policy expires.
 
 

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