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Market Update
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Real Estate & Construction - International
Printable Version
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Water damage claims in the U.K. construction market could be significantly
reduced if an industry standard is created.
Major U.K. developers, contractors, engineers, and manufacturers have joined
forces to represent the construction and property sectors in a series of meetings
hosted by Lockton, to discuss an Escape of Water industry standard.
There has been a growing feeling amongst U.K. construction underwriters
that something has to be done about the number of water damage claims on
construction sites. The number and cost of claims cannot be allowed to continue,
not only because of the insurance implications, but because it is costing the
construction and property industries millions of dollars in management time and
in delays in practical completion.
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Lockton coordinated a working party from the property and construction industry
to try and address the situation and to put standards in place, with a view to taking
a solution to the insurance industry.
Although several meetings took place and much progress was made, before a
conclusion was reached, the Construction Insurance Risk Engineers Group
has separately produced a discussion paper on the issue—guidance note on
the avoidance of water damage on construction sites. The document has been
launched to outline some of the ways in which the industry can attempt to tackle
the root causes of the problem, and also to suggest ways in which individuals can
mitigate the effects of an incident, should a loss occur.
Lockton predicted that U.K. construction underwriters would take a step like
this and we wanted to be proactive and determine how to move forward. This
discussion paper is a good starting point, and an opportunity to receive feedback
from clients.
Our working party will reconvene in September.
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Please contact your Lockton Representative for further information regarding any information contained in this
market update.
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Stephen Bracey
Managing Director,
Real Estate and Construction
London, U.K.
Tel: 011 44.20.7933.2193
E-mail: sbracey@uk.lockton.com |
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