Professional Indemnity insurance in the design and construction sector is changing rapidly leading to some organisations unable to arrange the professional indemnity insurance  required to support their business.

The market has been affected by the sustained and significant losses over the last few years, including those which have arisen as a consequence of the Grenfell Tower fire.

Several insurance companies have decided to close their doors to Professional Indemnity insurance and those remaining have significantly increased their premiums in recent months. Many contractors are faced with large increases in premium, some in excess of 200%.

Roofing contractors, curtain walling and other high hazard companies, such as pilling contractors, are particularly vulnerable. It is commonplace for these contractors to require at least £5m limit of cover however in some cases only £2m is available with a combination of higher policy excesses and new exclusions.

Alarmed contractors are contacting their trade bodies concerned that their activities shall be limited by the scope of their insurance cover. In addition, due to the ‘claims made’ nature of these policies, a future claim, arising from the previous work undertaken by their company, may not be adequately insured.

Today it is more important than ever to work with an insurance broker who has the knowledge to understand their client’s specific insurance requirements and is able to access the whole of market to fulfil their needs.