Hindsight in Design and Construction PI Insurance

By Cliff

You only realise how hard it is to unravel the entanglement of liability and lessons learned from the Grenfell disaster when you comprehend the number of people and companies in the construction and maintenance supply chain.

Insuring structures containing composite panelling is, quite rightly, difficult. After all, fire and rescue services have warned that they can only control fires in buildings with composite panelling in their structure – they cannot put out these fires. It is surely unnecessary to point out why this is an issue for insurers, let alone those living in and using such buildings.

Until the Grenfell blaze, composite panelling had been considered a fire risk, but not a construction risk. If you work in, or are connected to, a company involved in high-rise buildings, you are now likely to be finding it difficult to get Design and Construct Professional Indemnity (D&C PI) insurance. Also, those involved in developing and manufacturing composite panel products have been on the sharp end of D&C PI and many have subsequently left the market.

Premiums have risen as many insurers have backed out of the D&C PI insurance market. The knock-on effect has been implosive, as contractors may not be able to obtain the level of insurance coverage demanded by their customers. This results in engineering and construction specialists targeting alternative niches, working overseas or exiting the market entirely. The ripples Grenfell has generated are spreading out into unrelated sectors of the construction insurance market.

We might be able to help you

Although we can’t do anything about market forces, our extensive experience in insuring construction companies and those in the construction profession enables us to identify some of the best, and most practical, PI insurance options available. Call us on 01525 719955 or email info@homecountiesinsurance.com for help.

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