Design & Construct Professional Indemnity Insurance
As a Professional Indemnity Broker, we understand the importance of protecting financial interests in construction projects. That’s why we specialise in helping Design and Construct Professionals & Contractors obtain cover to ensure that their interests are protected at every stage of the project and beyond.
Even contractors who are not heavily involved in the design process may be required to purchase professional indemnity cover. It’s important to note that professional indemnity insurance is arranged on a “claim made” basis, meaning that coverage is only provided for claims made during the period of insurance. So if a contractor is required to have cover for 6 or 12 years, they must purchase insurance annually for that period.
However, construction contractors are currently facing challenges in obtaining professional indemnity cover at reasonable rates, or even obtaining coverage at all, due to a contraction in the professional indemnity insurance market. As your trusted professional indemnity broker, we work tirelessly to help you find the best coverage options available, even in challenging market conditions. With our expertise and knowledge of the industry, we can help ensure that all parties involved in a construction project have adequate coverage to protect their financial interests.
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.
The claimant sub-contracted to the Insured the M&E installation work on part of a major new shopping centre project. The electrical installation designed/constructed by the Insured was allegedly performed in breach of contract, and urgent remedial works were completed.
Settled £200k / Costs £32k
The Insured was instructed by the main contractor to design, supply and construct the timber frame for a new primary school. The claim concerned the structural failure of the school’s floors/ceilings, leading to its closure, remedial works and associated costs. The cause was originally considered to be the failure of the glue product used rather than the Insured’s specification. However following the disclosure of new expert evidence, the claim was amended to include design defects.
Settled £110k / Costs £15k
Following a catastrophic fire in a shopping complex with a number of contributory factors, the fire insurer issued claims against 13 parties including The Insured building contractor, alleging that the faulty design of an extractor flue allowed hot gases to build up. Whilst the claim was successfully defended, irrecoverable costs were incurred
Settled £0/Costs £80,000
The Insured designed and installed the heating and ventilation for a restaurant. Post completion, air extraction and temperature control failed to work properly. The restaurant had to close pending repairs.
Settled £150,000/costs unknown
The Insured was contracted to design and build a cold storage room in a food processing factory. After completion, the temperature of the room consistently remained too high because of inadequate design.
Settled: £250,000/Costs unknown
The insured was contracted for the refurbishment of domestic flats to a previously agreed specification and was asked to fit some additional external balconies not included in the plans. The design of these balconies subsequently led to water penetration into the flats beneath. The builder’s design was found to be deficient.
The insured designed and built a new car park building. Incorrect structural calculations contributed to total building failure.
Settled: £550,000/Costs unknown