Is the cost of PI Insurance starting to outpace the value?

It seems to be the case these days that on a weekly basis, I am contacted by PCA members who are negatively impacted by the ever rising cost of professional indemnity insurance. The availability and scope of cover seems to be getting eroded while the price and levels of compulsory excess rise disproportionately.

Yes, we have mentioned this before…but!

We have covered the Professional Indemnity Insurance (PII) problem several times over the last year or so and in these articles, our commentators predicted that things were likely to get worse before they got better.

That said, we did not expect to find that some of our PCA members would see insurers remove cover for “pre purchase” or “design liability” from policy renewals and increase compulsory excesses by 200% while reducing policy value by including aggregation clauses.

The fallout from the Grenfell disaster, issues with capacity in the insurance industry and perhaps, the ‘Hart and Large’ court case are still impacting the already constricted market.

CLC now compelled to act

We continue to receive good advice and support from our partners at Astute Insurance, but they, like many PCA members, are far from immune to the Professional Indemnity Insurance crisis. As you may expect as well, the effects of the problem are being felt across the building professions. So much so, the Construction Leadership Council (CLC) now seem to be moved to act!

We have been made aware of a survey they are conducting and their promises to “do something about it”. Though we would encourage PCA members to look at the very cladding centric survey, we would not suggest your hold your breath in anticipation of a quick fix.

International insurance doesn’t jump to the tune of industry pressure groups or even the concerns of national Government. Insurance premium is calculated by clever people who look at risk and who are tasked with making money…not giving it away.

In a world where industry has been found wanting and a Government where there seems to be an increased risk of claims rather than diminish them, the chances of a rapid breakthrough that free’s up the Professional Indemnity Insurance market, facilitated by the CLC, is noble but perhaps a tad optimistic!

Take part in the review

For those members that are interested in expressing their view, to take part in what is being referred to as ‘the biggest ever review of construction’s growing professional indemnity insurance crisis’, simply click on the button below:

View the Survey >>

Other recent news or related info

Remember to keep in the loop…

Find out the latest news instantly by following the PCA via our social media channels:

Follow us on LinkedIn Follow us on Facebook Follow us on twitter