New policy hailed as Property Developers’ key to managing uncertainties of planning
CLS Risk Solutions, a leading MGA for legal indemnity and transactional property risk solutions, has announced a collaboration with to launch an Abortive Planning Costs Product, which promises to be an indispensable policy for all UK developers.
Planning refusal is a risk common to all developers and forms a core consideration in assessing a project’s feasibility. Currently, UK developers carry the risk of a planning refusal and the associated application costs being lost. The Abortive Planning Costs Product transfers this financial exposure to the Insurer, allowing the developer to ringfence potentially significant expenditure for a known premium.
This new and innovative product is provided with capacity from Great Lakes Insurance SE rated ‘AA-’ (S&P), an arm of the Munich Re Group. Typical costs covered may include:
– Preliminary Site Investigations
– Planning Fees
– Project management costs associated with the proposal including Planning Consultants, Architects, Highways Consultants, Ecological Consultants, Surveyors, Flood Risk Engineers, Landscape Architects, Acoustic Consultants, Land Contamination Consultants, Accountants costs
– Legal Fees
– Payments for exclusive negotiating rights
– Costs associated with market research
Chris Gwynn, Lead Underwriter for CLS Risk Solutions, comments: “For the first-time developers, lenders, investors, and their brokers can purchase an ‘AA-’ rated policy to cover the costs associated with a refused planning application. This new product provides an indispensable tool for developers looking to manage the uncertainties involved in the planning process and can be combined with CLS’s existing judicial review, legal indemnity, rights of light, and environmental products to offset the risks associated with a development.”
John Quinlan, Director at Team Partnership, comments: “We are delighted to be partnering with CLS to bring this exclusive product to market. Their innovative approach to underwriting combined with expertise in legal indemnities, and of course their access to some of the most secure capacity available on the market, makes this unique product very attractive for brokers and any of their clients involved in real estate development.”
MGA CLS Risk Solutions removes uncertainty from property transactions and development projects by combining data, legal knowledge, technology and insurance capacity to create products and solutions for the UK and European property markets. Launched in 2010, it is a leading MGA with delegated authority from ‘AA-’ rated Munich Re capacity providers. Its products enable the client to define, quantify and transfer risk that is otherwise capable of frustrating the acquisition, funding, development or disposal of a real estate asset.
For further information please contact: SJ Wrigley at Spotlight Consulting on 07909546104 or sj@spotlightconsulting.co.uk