Since Grenfell, many PI insurers have introduced fire safety exclusions. Understanding these exclusions and finding cover that works is critical for construction professionals.
The Post-Grenfell Insurance Landscape
The Grenfell Tower tragedy in June 2017 fundamentally changed the Professional Indemnity insurance market for construction professionals. Insurers faced unprecedented claims exposure, and many responded by introducing broad fire safety exclusions into their PI policies.
Types of Fire Safety Exclusions
Fire safety exclusions vary significantly between insurers, but common forms include:
Absolute Cladding Exclusions
These exclude all claims relating to the design, specification, approval, or installation of external cladding systems. This is the most restrictive form of exclusion.
Building Regulations Fire Safety Exclusions
These exclude claims arising from failure to comply with Part B (Fire Safety) of the Building Regulations. This can be extremely broad in its application.
Height-Based Exclusions
Some exclusions only apply to buildings above a certain height (typically 11 metres or 18 metres), reflecting the regulatory focus on higher-risk buildings.
Material-Specific Exclusions
Some policies exclude claims relating to specific materials (e.g., ACM cladding, combustible insulation) rather than fire safety generally.
Impact on Construction Professionals
Fire safety exclusions can leave construction professionals significantly exposed. If you work on any project involving:
- External wall systems or cladding
- Fire compartmentation
- Fire detection and alarm systems
- Fire stopping
- Means of escape design
...you need to understand exactly what your PI policy excludes.
Finding Appropriate Cover
PLB works with specialist underwriters who understand fire safety risks and are prepared to provide meaningful cover. The key is presenting your risk properly — demonstrating your competence, quality controls, and the specific nature of your fire safety involvement.
Not all insurers have the same appetite or the same exclusions. A specialist broker knows where to find the cover you need.