Managing general agent CLS Risk Solutions has rolled out an abortive planning costs product with the help of risk management specialist Team Partnership.
With UK developers currently carrying the risk of a planning refusal and the associated application costs being lost, the tie-up brings to market a product designed to transfer the financial exposure to the insurer and that will allow the developer to ringfence potentially significant expenditure for a known premium.
“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,” said CLS Risk Solutions lead underwriter Chris Gwynn.
“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.”
Typical costs covered may include preliminary site investigations, planning fees, project management costs associated with the proposal, legal fees, and payments for exclusive negotiating rights. Capacity is provided by Munich Re unit Great Lakes Insurance SE.
“We are delighted to be partnering with CLS to bring this exclusive product to market,” commented Team Partnership director John Quinlan.
“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.”
