This article originally appeared on Insurance News
Resilience Insurance says Coverforce has been appointed as an authorised distributor for its Latent Defects (LDI) offering, joining SHC Insurance Brokers and Master Builders Insurance Brokers to sell the product on its behalf.
The Steadfast-owned broker was appointed about a month ago, Resilience Insurance says. Coverforce says in a LinkedIn post the business hosted its first developer forum on LDI for property developers this week.
“For the product distribution absolutely the three partners are vital because they are our face in dealing with clients and consumers,” Resilience CEO Stefan Hicks told insuranceNEWS.com.au.
Resilience launched the LDI offering for high-rise buildings in July, saying it is a “game changer” for the construction industry following widespread reports of failures in design, workmanship and use of inferior materials.
Mr Hicks says response to the product “has been huge” and the business has been “inundated with enquiries” but there are no plans to expand the number of authorised broking partners.
“We’re not necessarily opening it up to the entire broking market because… the product is a very complicated product,” Mr Hicks said.
“So what we have done with the three brokers is that they are open for other broker wholesale arrangements.
“If other brokers have business for latent defects to put through, they can actually ring up any of them to put through a wholesale deal.”
He says capacity is provided by Scor Re, one of the biggest insurers for latent defects risk.
“Because we partnered Scor Re, we have the capacity to soak up the entire market so we can do 100% of the market through our partners,” Mr Hicks said.
LDI, known also as decennial liability insurance or inherent defects insurance, provides cover for structural defects after a building is completed and is taken out by developers when a project starts.
The Resilience offering covers the property owner for a period of 10 years from the date of occupancy certificate.
