The Construction Leadership Council (CLC) has called on companies from across the industry to take part in the “biggest ever” review of construction’s growing professional indemnity insurance crisis.
The survey will be live until 12 March 2021 and will be published by CLC. The results will be used to inform ongoing work to support the sector.
In recent years firms from across the industry have reported sharp increases in
premiums for PI insurance, while also seeing stricter curbs on the levels of cover. Some firms have reported “four-fold increases” in policy costs, while others have said
that they can “no longer secure” cover.
The council claims this has been driven by multiple factors including a response to higher historic claims from the sector, as well as a cyclical hardening of the insurance market.
The CLC revealed it will step in and develop a “robust evidence base”, identifying in detail the areas where the industry is facing the most significant difficulties.
The council has asked companies to provide confidential feedback on the costs and policy exclusions that they have experienced when renewing their cover.
The poll is entirely confidential, but firms are asked to indicate their type of business to help target any future support on those areas of greatest need.
Samantha Peat, professional indemnity insurance group lead, CLC, said: “The Covid-19 pandemic has dominated headlines for the last year, but there is a second crisis that has been quietly growing for businesses across our industry.
“We are speaking to the UK Government and insurers to find ways to help businesses
that could otherwise face an uncertain future due to the nature of their PI renewals.
We want businesses from across the industry to give us their views – whether you are
affected or not – to help us shape the way we prepare a response from the whole sector.”
Andy Mitchell, chair, CLC, added: “Given the feedback from across construction about the difficulties faced by companies, I want to strongly encourage companies to take part in this survey, letting us know about their experiences.”