Building Contractors Professional Indemnity Insurance
Building Contractors PI Insurance
At Professional Liability Brokers, we prioritise protecting your business and professional reputation.
We tailor our Building Contractors Professional Indemnity Insurance solutions to meet the unique needs of contractors and design professionals.
Our policies ensure compliance with JCT contract requirements and provide peace of mind at competitive premiums.
Why Choose Our Insurance Solutions?
We craft insurance policies to address the risks you face as building contractors.
For example, these include claims for design errors, project delays, and breaches of contract.
Our team ensures your coverage aligns with industry standards and meets contractual obligations,
especially those outlined in JCT agreements.
Tailored Building Contractors Professional Indemnity Insurance
Whether you’re a contractor handling construction or a professional offering design-and-build services, our insurance protects your business. We provide coverage that minimizes financial risks from claims of negligence, errors, or omissions. Additionally, you may access a legal advisory service, offering expert guidance when it matters most.
Competitive Premiums and Reliable Support
We deliver insurance packages that combine value with reliability. By working with industry-leading providers, we negotiate competitive premiums that don't compromise on coverage. Our dedicated team works closely with you to understand your business needs and deliver exceptional service.
Can I buy cover for a single contract?
For almost all contracts, policies are purchased annually – single contract policies are available, but these are normally only available for major construction projects of £25 million and above, and are more designed for large major projects, like bridges, tunnels, airports or large office blocks covering all professionals involved such as Architects, Engineers, Designers, Construction Supervisors/Managers, Surveyors and Contractors.
Although suitable for much larger contracts, if all parties are in agreement these are often not only more beneficial for the owners but also for Joint Ventures formed by consultants and contractors pooling their resources and expertise on large construction projects allowing guaranteed covers with total cost management of the insurance cover being established at the outset. It can then be budgeted and charged to the project.
Arrange a 15-Minute Online or Telephone Consultation to Discuss Your PI Insurance Needs
Understanding your unique business needs is at the heart of providing the best insurance solutions. We invite you to schedule a one-on-one consultation via Teams or telephone at your convenience.
This meeting allows us to better understand your specific requirements, ensuring our services are tailored to your business. Every business is unique, and we are committed to finding the right coverage to protect what matters most to you.
Example Claims
1. Electrical Installation Defect
The claimant subcontracted the M&E installation work to the Insured for a major new shopping center project. Allegations arose that the Insured breached the contract by improperly designing and constructing the electrical installation. Urgent remedial works were required to resolve the issue.
Settlement: £200k / Costs: £32k
2. Structural Failure in Primary School
The main contractor hired the Insured to design, supply, and construct the timber frame for a new primary school. After completion, structural failures in the floors and ceilings forced the school to close and required extensive remedial work. Initially, investigators believed that the glue product, not the Insured’s specifications, caused the failure. As the case progressed, new expert evidence ultimately uncovered design defects. This discovery prompted an amendment to the claim.
Settlement: £110k / Costs: £15k
3. Fire in Shopping Complex
A catastrophic fire occurred in a shopping complex, with multiple contributory factors. The fire insurer issued claims against 13 parties, including the Insured building contractor. The claim alleged that the faulty design of an extractor flue allowed hot gases to build up. Although the Insured successfully defended the claim, irrecoverable costs were incurred.
Settlement: £0 / Costs: £80k
4. Cold Storage Room Design Flaw
The Insured designed and built a cold storage room in a food processing factory. After completion, the room failed to maintain the required temperature due to an inadequate design.
Settlement: £250k / Costs: Unknown
5. Balcony Design Deficiency
The Insured refurbished domestic flats to a previously agreed specification and added external balconies upon request. The balcony design caused water penetration into the flats below, and investigations revealed deficiencies in the builder’s design.
Settlement: £150k
6. Car Park Structural Failure
The Insured designed and built a new car park building. Errors in structural calculations caused the building to fail completely.
Settlement: £550k / Costs: Unknown
7. Restaurant Heating and Ventilation Issue
The Insured designed and installed the heating and ventilation system for a restaurant. After completion, the air extraction and temperature control systems malfunctioned, forcing the restaurant to close temporarily for repairs.
Settlement: £150k / Costs: Unknown
Useful Links for Building Contractors
- Why use a Broker for your PI Insurance
- Joint Contracts Tribunal (JCT) Guidance Notes for JCT Contracts A resource for understanding JCT contracts, including clauses on professional indemnity insurance and contractual obligations.
- Construction Industry Training Board (CITB) Insurance Requirements for Contractors Advice on insurance requirements for contractors, including best practices for professional indemnity and employer’s liability insurance.
- Federation of Master Builders (FMB) Guidance for Building Contractors Tips and advice for building contractors on complying with industry standards and meeting insurance requirements.
- Constructing Excellence Best Practice Guides for Construction Professionals Comprehensive guides on risk management, project compliance, and contract administration.
- CITB Toolbox Talk Understanding Professional Indemnity Insurance in Construction An easy-to-understand toolbox talk document on PI insurance and its importance for contractors.
- Association for Specialist Fire Protection (ASFP) Insurance Guidance for Building Contractors Specific advice for contractors working under fire safety and building standards regulations.
