Blenheim Partnerships Launches New Build Delivery Product

New Build housing projects are something of a risk right now as the housing market cools after years of bubble type growth. Fact is, lending criteria and mortgage affordability tests mean a cap on earnings vs payments is integral, so that in turn caps prices of new builds. But the materials, land acquisition and labour costs have all soared since Covid. That puts strain on the new build sales pipeline and builder overheads and cashflow.

Here’s the word from Blenheim Partnerships;

Blenheim Partnerships, part of the White Bear Group, today announces the launch of a new-build delivery failure insurance solution (“Knot-on-Time”), offering protection to vessel owners against the financial consequences of non-delivery and delayed delivery. The offering has been launched and led by Edward Parker, senior underwriter, special risks, Blenheim Partnerships.

With global shipbuilding activity at its highest levels in more than two decades, the solution provides cover for a range of losses that may result from a failure to deliver, including increased vessel-replacement costs, lost charter income, financing expenses, contractual liabilities, and reasonable mitigation costs associated with securing alternative tonnage or a replacement newbuilding.

As shipowners continue to invest in fleet renewal programmes, decarbonisation initiatives and capacity growth, the ability to manage delivery-related risks has become an increasingly important consideration. The new insurance solution is intended to help preserve the economic value of vessel-acquisition projects when planned deliveries do not proceed as expected, and acts as protection against losing lucrative contracts.

Parker said: “At Blenheim, we are constantly looking for gaps in the market where clients face emerging or underserved risks. We identified a need for broader protection against the financial consequences of newbuilding delivery failures, and this “Knot-on-Time” offering is designed to help businesses protect the value of their investment when a project does not go according to plan.”