Clients within the construction industry will have been experiencing a difficult time financially of late; the increasing cost of materials, of labour and of a hardening of pricing in the insurance market too.

Insurance price increases have been driven by significant losses felt across the sector and have seen a number of insurers narrow their underwriting appetite and/or pull out of certain lines that are perceived to be a too high-risk exposure.

The new Building Safety Act 2022 has now come into force and is intended usher in a new regime emphasising greater responsibilities and liabilities for developers, main contractors as well as the suppliers of defective construction materials.

The Act:

• Creates a new safety regime for the construction of residential buildings
• Creates the role of a Building Safety Regulator, who will oversee safety and standards of all buildings, encourage the industry to improve competencies and lead the implementation of the new regulatory framework for high-rise buildings
• Requires Principal Designers to be responsible for a ‘golden thread’ of information regarding building safety at each stage of design and construction
• Establishes the New Homes Ombudsman to resolve complaints over defects from home buyers
• Extends the limitation periods under the Defective Premises Act meaning the document retention will need to be much longer and potential liability periods have now increased.

It is more important than ever that your current building and/or construction insurances are reviewed and advice is sought on the impact of the Acts new regime and to ensure that your cover remains adequate.

If you need any advice or help with your insurance needs, please call 0161 393 7111