Logistics and distribution centre warranties
Latent defects insurance for big-box sheds, cross-dock buildings and last-mile hubs - buildings where a roof leak or a failing slab can stop an operation that runs day and night.
- Instant response
- Insurer quotes usually within one working day of your proposal
- UK FCA Regulated Broker
- No broker fee to pay
- Trade counters to big-box logistics
Why logistics is different
Large buildings where downtime is expensive
A distribution centre is judged on how well it keeps goods moving. The roof may cover many thousands of square metres, the slab carries high racking and constant forklift traffic, and the dock doors see heavy use from the first day. When something goes wrong with the structure, the cost of the disruption can be far larger than the repair itself.
Logistics latent defects insurance covers damage caused by hidden defects in the structure and, on many policies, the weatherproof envelope, usually for 10 or 12 years from completion. Because the policy is usually assignable, it can pass to the investor who buys the building and to the operator who leases it.
Buildings we cover
Distribution buildings of every size
Big-box distribution centres
Large single-occupier sheds for retailers, parcel carriers and third-party logistics firms, often built to a pre-let.
Cross-dock buildings
Long, shallow buildings with docks on both sides, where the slab and the dock areas take constant traffic.
Last-mile and urban logistics
Smaller units close to towns and cities, sometimes on tight or previously developed sites with ground to consider.
Risks underwriters focus on
What a provider will want to understand
- The slab. Racking loads, joint design and the flatness specification for high bay or narrow aisle use
- Ground conditions. Large footprints can cross varying ground, and settlement shows up in the slab and the frame
- Roof drainage. Getting water off a very large roof, including gutters, outlets and rooflights
- Large spans. The frame design and how the roof and cladding are fixed to it
- Dock areas. The structure around dock openings, which takes knocks from vehicles every day
Dock levellers, doors and building services are usually outside the core structural cover. Some insurers offer mechanical and electrical cover as an optional extension.
Pre-lets, forward funding and investment sales
Large logistics schemes usually involve more than one party with a long-term interest. A pre-let tenant may require latent defects insurance in the agreement for lease. A forward funder may make it a condition of funding. An investor buying the finished building will want to know the structure is protected for the rest of the policy period.
Arranging cover at the start, before the first ground works, means the policy can be written with all of those parties in mind. We check that the provider is likely to be acceptable to the funder and the tenant's advisers before you commit - they make the final decision - and that the assignment terms work for the way the building will be sold or let. See investors, funders and tenants.
Distribution centre warranty questions
Is loss of rent covered on a distribution centre?
Not as standard. Some insurers offer loss of rent as an optional extension, which can help an investor if a defect makes the building unusable while it is repaired. It adds to the premium. It covers rent lost while covered damage is put right, within the policy limits. Stock, business interruption and other trading losses are not normally part of latent defects cover.
Will the policy cover problems with slab flatness?
It depends on the wording. Policies generally respond to damage caused by a defect, and how the slab is treated varies between insurers. We make sure you know how the slab is covered before you commit.
Can cover be arranged once a distribution centre is under way?
Sometimes. The provider will want evidence of the work already done, such as ground works and slab records, and the premium is likely to be higher. Ask as early as you can.
Can the policy pass to the investor and the operator?
Often, yes. Many policies can be assigned to later owners and to tenants, so the cover can follow the building through an investment sale and a lease.
Get a distribution centre quote
Tell us about the building, the site and the parties involved, and we will come back with the underwriters likely to cover it.
- Takes under a minute
- Instant reply by email with your reference
- Insurer quotes usually within one working day of your completed proposal
- Sites anywhere in England, Scotland, Wales and Northern Ireland
- Free and no obligation
Already filled in a proposal form? Email it to us or send it on WhatsApp with any drawings you have and we will take it from there.
