Read our top tips for securing appropriate cover in the construction PI market.
At SafeContractor, we’re committed to ensuring that your business adheres to legislative health and safety requirements, but we also want to ensure that you are aware of relevant changes in your industry. Learn the latest on the construction Professional Indemnity (PI) market.
A hardening construction PI market
Securing professional Indemnity (PI) cover is proving to be difficult for companies due to cover limitations or hikes in premiums. While some insurers have quit the PI markets, others have had no choice but to increase premium rates. As a result, companies are now struggling to secure the cover they require.
Concerns raised over the construction industry
The Grenfell Tower disaster in 2017 sparked criticism of building regulations and fire safety, which led to concerns about the construction industry. In addition to high profile company failures, with more potentially in the pipeline, it’s understandable that some insurers are exiting the PI market.
Our 4 top tips for securing appropriate cover
As it stands, the construction industry faces a significant increase in premiums and cover limitations being enforced. As previously mentioned, some insurers have pulled out of the PI market, so there are less providers around. We’ve put together the following tips to help you act accordingly in the current market and secure appropriate cover:
- Allow plenty of time to renew your cover – it’s wise to arrange a pre-renewal meeting with your broker three months ahead of renewal.
- Start collating the required cladding information – supply as much information as you can, including positive risk management details, full details of contracts involving cladding, and all information on both previous and current claims.
- Complete the renewal proposal form – this part of the process is key. Answer all questions fully and don’t attempt to conceal information. Send the completed form to your broker along with the information you’ve collated.
- Be thorough in your new renewal to avoid delays – your broker will review your application and advise if further information is needed before it is sent on to insurers, so it’s important to be as thorough as you can first time round.
How we can help
It’s essential that you have appropriate business insurance in place to achieve SafeContractor accreditation. As a SafeContractor member, you’ll have access to specialist business insurance through our insurance partners at Towergate. You’ll be able demonstrate your commitment to health and safety to your customers and receive the support you need regarding the best business insurance for your needs. SafeContractor members can also enjoy a wide range of other fantastic member benefits.