The coronavirus pandemic is changing the way businesses operate due to the need to enable social distancing. The commercial real estate and construction sector is no exception and will need to adapt together with its tenants and clients.
While availability and terms and conditions of Professional Indemnity (PI) insurance protection as well as Construction All Risks (CAR) cover are affected by greater frequency and severity of claims, there is still significant capacity in the London construction market if managed and brokered correctly. Even pandemic cover may be available soon for construction projects.
While the current COVID-19 pandemic has emptied city centres, life will eventually get back to normal.
Thousands of building sites in the UK are closing due to health risks from the COVID-19 outbreak, a task that involves taking a series of measures to keep the site safe during an unknown period. For construction firms this adds to a list of insurance-related issues that the pandemic is bringing up.
Many of our real estate sector clients and their tenants will be following Government advice and have arranged for their employees to conduct business from home, rather than at their usual place of work. This is likely to become more widespread as time goes by, with a large number of premises becoming unoccupied or occupied intermittently.
The risk of floods damaging buildings is set to rise due to climate change, but it is already threatening the viability of many businesses across the UK.
Unless they are promptly detected and fixed, burst pipes can quickly cause a lot of damage to a property. This is not hard to understand when you consider that a burst pipe can release the equivalent of 50 bathtubs full of water in a single day.
The integration of technology in buildings and the data-gathering this enables is helping real estate operators and investors to raise the profitability of properties but it is also changing the nature of risk exposure in the sector.