MX Commercial case study: Liability cover success for construction start up

The Challenge

Recently tasked with providing Liability and Contract Works insurance solutions for a newly re-launched construction company, MX Commercial faced a challenge that demanded a strategic and discerning approach. The construction firm specialises in alterations, maintenance and repair, constituting a substantial 80% of its overall works. The risk factors, however, extended beyond the project nature, with hurdles including the startup status, complex historical adverse financials, engagement in large timber-framed projects and an imposing quotation deadline.

The Specialist Solution

MX Commercial tackled the multifaceted challenges head-on with an efficient and confident approach.

1. Swift information gathering
   Recognising the critical role of experience and expertise, MX Commercial initiated a meticulous process of information gathering. Background checks ensured that senior management and owners possessed the necessary skills and a proven track record in the construction domain. This step formed the foundation of a risk assessment that sought to mitigate potential pitfalls.
   
   
2. Financial due diligence
   The hurdle of complex historical adverse financials required a nuanced response. The Liability team adopted an open-minded approach, recognising the challenges in the UK construction sector. Financial due diligence allowed the team to identify and understand potential financial risks. This method ensured a comprehensive understanding of the financial landscape and facilitated informed decision-making.
   
   
3. Detailed contract analysis
   

   Navigating the intricacies of large timber-framed projects required a keen eye for detail. MX Commercial methodically analysed the detailed contract documentation to uncover potential risks and liabilities. By liaising with capacity providers, the team obtained an equitable proposition for the insured. This strategic collaboration aimed to balance the interests of all stakeholders and create a comprehensive insurance solution tailored to the unique aspects of the construction projects.

4. Adaptable post-bind subjectivities
   Acknowledging the tight quotation deadline, the team implemented a dynamic post-bind approach. Multiple post-bind subjectivities were employed to ensure that any unavailable pre-inception information was promptly gathered, assessed and actioned. This nimble strategy allowed MX Commercial to adapt to evolving circumstances, ensuring that all relevant information was considered in real-time.

The Outcome

The team’s resolute approach yielded great results for the client. By efficiently navigating the complex challenges posed by the client, MX Commercial successfully provided comprehensive Liability and Works insurance coverage. The indemnity limits, including £5 million for Public Liability, £10 million for Employers Liability and £5 million for Contract Works, reflected the tailored nature of the insurance solutions.

This case study exemplifies MX's commitment to proactive risk management, strategic collaboration and adaptability in the face of a time sensitive challenging enquiry. Through efficient information gathering, financial due diligence, detailed contract analysis and adaptable post-bind subjectivities, MX Commercial not only mitigated risks but also facilitated the growth and success of a new player in the construction industry. The outcome underscores MX Commercial's expertise and unwavering dedication to providing innovative and effective insurance solutions for their broker partners.

Find out more about our Liability solutions or contact the MX Commercial team.