I recently met with a property developer who told me something refreshingly honest:

“We believe in investing in a solid professional team, but when it comes to insurance and insurance brokers, we’re just not sure.”

That sentiment is common. Insurance can feel overly complex, policy documents are far from engaging, and without the right guidance it’s easy to overlook gaps or sign terms you don’t fully understand. What most developers want is clarity, not jargon. Straight-talking advice that helps them make confident decisions. So before talking products or prices, we started by looking closely at their business.

Understanding the business

This developer operated through Special Purpose Vehicles (SPVs), with a parent company above them. We carried out a quick triage to map out their setup, covering:

• Company structure
• Project management arrangements
• Contractor relationships and contracts
• Past and upcoming projects
• Long-term development plans

That gave us a clear picture of both their current position and their future ambitions.

The immediate need: a building warranty

For their next scheme, construction works were insured by the main contractor, and they already had annual cover for their operational exposures. But one critical piece was missing – Latent Defects Insurance (LDI), also known as a building warranty.

Without this in place at the right stage, developers risk delayed funding, reduced cover options, and inflated premiums. So, acting quickly was essential.

Finding the right cover; and the right insurer

Several providers could offer terms but knowing which markets to approach and how to position the risk is where a broker makes the difference.

We secured three competitive quotes (all from A-rated insurers) and better terms than the client had found themselves. That reflected the power of broker relationships and market knowledge.

The options were reviewed together, and they chose a provider they’d worked with before. This proved beneficial because the developer was already familiar with the product and service; their lender was comfortable with it, ensuring smoother drawdown; and the policy ticked every box for the project team.

Clarifying the small print – a broker’s role

A key discussion was the insurer’s request for a parent company guarantee; this is common when SPVs are used. But on closer review, we noticed the contractor had already accepted the Defects Liability Period under the JCT contract.

We negotiated with the insurer, so the policy’s Defects Period aligned with the contractual Defects Liability Period. This removed the need for an additional guarantee, while keeping obligations intact. For the developer, this was a turning point. In the past, they had signed cross-company and even personal guarantees feeling under pressure to to “just sign if you want the policy.”

While guarantees can sometimes be useful tools, too often they’re imposed as default without questioning if they’re truly necessary. Brokers can add real value by challenging these assumptions and presenting alternatives.

Takeaway

Insurance should never be a tick-box exercise. It’s a strategic part of risk management, and that starts with clear conversations and proper advice.

Our role is to act in our clients’ best interests: making sure they have the right cover, remain compliant with legal and lender obligations, and avoid paying over the odds. For this developer, one straightforward conversation helped reduce risk, secure the right warranty, and avoid unnecessary commitments.

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If you’re a developer looking to get more from your insurance arrangements – or simply want someone to cut through the fine print – I’d be happy to help.

Antoni

Antoni Kaminski

M. +44 (0) 7586 645820

E. [email protected]