Why Do Companies in Construction Need Professional Indemnity Insurance?

By Cliff

Professional indemnity (PI) insurance protects you from a host of liabilities if you provide advice or building design services. It also covers you for breach of professional duty while providing services.

In the past, contractors didn’t generally need PI insurance.

Times have changed. Today, PI insurance covers contractors for advice they provide. This should not be confused with public liability (PL) insurance, which covers you while your business is engaged on-site for breaking/damaging third-party property or accidental injury. Also, PL policies don’t cover a contractor before their work has started or after it has finished.

Following recent disasters, the responsibility for losses that can be apportioned to a building’s design has been driven down the supply chain. Now most specialist trades need to carry PI insurance if they want to win substantial contracts.

Today, main contractors must co-sign building Completion Certificates under the Building Control Amendment Regulations, and their sub-contractors must sign Ancillary Certificates. As these formal sign-offs are required by more parties per project, the burden of responsibility and blame in the event of a building failing after completion is spread much wider.

We can help you

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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