High Value Commercial Buildings Insurance

The services contract is for high value commercial buildings insurance to provide full reinstatement cover for larger commercial buildings in borough such as shopping centres and other commercial buildings at a competitive premium.

The Contract is being awarded using the Direct Award (Urgency) process in accordance with Section 41 and Schedule 5 (Direct Award Justifications, (13 and 14)) of the Procurement Act 2023

13 Where-

(a)the goods, services or works to be supplied under the public contract are strictly necessary for reasons of extreme and unavoidable urgency, and

(b)as a result the public contract cannot be awarded on the basis of a competitive tendering procedure.

14 For the purpose of paragraph 13, urgency is unavoidable if it-

(a)is not attributable to any act or omission of the contracting authority, and

(b)could not have been foreseen by the contracting authority.

The value of the contract is £1,741,044 .

It is essential that high value commercial buildings insurance is in place to provide full reinstatement cover for larger commercial buildings in borough such as shopping centres and other commercial buildings at a competitive premium.

The council ran an open tender process which began on 7 October 2024 with publication of an FTS notice. No suitable bids were received for Lot 2 Commercial Property Insurance for the London Borough of Sutton, which illustrated that the public sector insurance market does not currently have the appetite or capacity to provide full reinstatement cover for larger commercial buildings.