Are you leaving yourself exposed with multiple SPV’s?
January 06 2020 By Mitch Cookney
We understand the reasons for arranging Special Purpose Vehicles (SPV’s), especially for different development ventures, but are they covered correctly from an insurance perspective?
At Reich, we are often asked to carry out detailed reviews of multiple insurances. Whether this is on behalf of a funder, an employer or simply for someone wanting a third parties’ viewpoint on their own insurance, we carry out multiple reviews and more often than not, identify gaps in cover where SPV’s are concerned.
The most common observation we make is that SPV’s are either missing covers, not insured at all or a client is being charged an excessive amount for their SPV’s exposure, all of which can be fixed with a few simple tweaks.
These covers often include Public and Employers Liability, Professional Indemnity, Directors and Officers Liability and Contractors All Risk; where one or more of the companies could be insured but cover does not extend to all SPV’s, or where all SPV’s are covered separately and underwritten separately, ultimately creating unnecessary duplication and additional cost.
As a specialist property and construction broker, we handle various SPV arrangements daily and understand the complexities of such company structures. We will endeavour to work with you and your insurers to create a bespoke and pragmatic package for you.
Contact us today for expert advice from our dedicated Construction team.