9 May 2013 by

Canapés and Insurance…..

In this commercial property e-news I am happy to impart two rather important facts to my avid readers.

The first is that if at a soiree, you foolishly consider that the rather tempting eggs benedict canapés proffered perfectly complement your glass of chilled champagne (and witty conversation) step away…just step away…

Why so may you ask? Well, I can attest from (bitter) personal experience, that conventional household cleaning products do not remove egg yolk from a respectable suit jacket and trousers, a popular designer tie, a blue shirt, black brogues and a bundle of important original documents…..

Now to business. The second and equally important fact is that research in 2012 by the Building Cost Information Service revealed that 80% of commercial properties were underinsured.

This is a real concern for property owners who are not only putting their investments at risk (and exposing themselves to significant costs in the event of a rebuild) but are also running the risk of claims being made by tenants for breaching their insurance obligations in their leases.

Regular valuations are crucial and it is important to ensure that the insured value includes the cost of demolishing and removing debris (which can add around 10% to the cost of reinstatement), professionals’ fees and VAT, where appropriate.

Insofar as tenants are concerned, most leases contain a definition of insured risks that must be insured against and rent suspension provisions in the event that a building is incapable of occupation due to damage or destruction.

It is not unknown for landlords (or their brokers) to omit to include certain risks within their cover and indeed the all important loss of rent aspect.

I suggest that you consider re-valuing your building if it has not been valued for some time and that you also check that all risks that you are obliged to insure against in your leases, are in fact included.

For further commercial property advice please contact us on 0207 288 4700 or email us at info@boltburdon.co.uk

25 April 2013 by Matthew Miller

Paying your dues…

The Late Payment of Commercial Debts Regulations 2013 came into force on 16 March 2013. In an attempt to protect smaller suppliers from cash flow problems, the new Regulations encourage the prompt payment of invoices by introducing new time limits for payments. However, a number of commentators feel the Regulations do not go far enough to protect small businesses.

2 May 2013 by

Dispute Resolution – Options for Funding your Claim

On 1 April 2013 many of the litigation costs reforms recommended by Lord Justice Jackson came in to effect.

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