Professional Indemnity Insurance Solutions for the Whole Construction Industry

PI insurance is traditionally purchased on an annual basis. However, in some cases, the arrangement of a longer-term, project solution may be more suitable.

Advantages:

• Shields annual corporate policies from project-specific claims.
• Provides dedicated policy limits to a project that cannot be eroded by claims from elsewhere
• Provides extended coverage periods to provide long term, cost and coverage certainty.

Disadvantages:

• May feature more restrictive terms compared to traditional policies.
• Faces capacity limitations in challenging market conditions.

In seeking SPPI from insurers, geographical access point is increasingly important. We understand the need to capitalize on regional divergence of appetite and will seek insurer capacity on a global basis where required, to maximise the options available.

Enhance your project's protection from design error with Owner’s Protective Professional Indemnity. Although a widely mis-understood product, when placed correctly OPPI can provide value to all the participants on a project. OPPI can help cover the potential for large losses arising from professional errors by the design team or can ‘drop down’ to cover losses that fall outside the scope of the design teams’ insurance due to underlying erosion from elsewhere or other policy coverage issues, including non-maintenance due to insolvency. Introducing OPPI into the conversation when negotiating contract terms with designers can unlock value and bring contracts to a close more quickly, potentially saving you time and money.

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Like all insurance, the availability of PI insurance is cyclical. Low levels of capacity increase premiums and narrow coverage. But where there is an abundance of capacity, broader coverage can be available at a reduced cost. So, some fluctuation is unavoidable. However, to smooth out those premium peaks and troughs we ensure our clients build deep carrier relationships and we carefully manage market engagement when we need to drive competitive tension.

Yes, you should still consider PI for at least 3 reasons:

1. You will likely be required to maintain PI coverage under your D&B contract.
2. Even if your sub-consultants carry PI coverage, it would still be beneficial to have your own PI insurance coverage to defend you. Afterall, you are highly likely to be vicariously liable for the work of your sub-consultants, if their work is negligently performed.
3. Broad PI coverage for a Design and Build Contractor can provide 1^st party rectification coverage for your own additional construction costs relating to a sub-consultant design error. This can be a useful way to get a project back on track. while a concurrent claim against the sub-consultant for their negligence continues.

Yes and No, You would not purchase a traditional PI policy if you were not performing professional services yourself. However, you should maintain a strong interest in the PI insurance being maintained by your professional advisors. And if your project is complex, explore SPPI and OPPI options to consider PI coverage, dedicated to your project.