UKTC Archive

Collateral warrenty for a contractor?

Subject: Collateral warrenty for a contractor?
From: Bettina Broadway-Mann
Date: Jan 29 2019 13:03:30
Hello all,
I have had a rather strange request come in in relation to a BS5837 survey
I did last year - copied below -

Your report has been included in their contract and they are concerned that
they are relying on your PI insurance for the report. They asked if you
could provide a collateral warranty. I have spoken to our solicitors who
have said that a collateral warranty can be provided if you agreed to this,
otherwise a letter of reliance in favour of the contractor would be
acceptable to the contractor.

I'm not really sure what they are asking, but shouldn't they have their own
insurances to cover whatever it is that they are worried about?

And as far as I know, surely my insurance would only cover me anyway?

Any thoughts appreciated.



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