Rising professional indemnity insurance premiums and restrictions on cover are preventing construction companies from taking on projects, and could delay work to improve the safety of buildings post-Grenfell, an industry survey has revealed.
The issue is creating a “two-tier system” where only those firms prepared to procure appropriate PI cover can undertake higher-risk projects.
The Construction Leadership Council survey results indicate that PI insurance premiums increased almost four-fold at the last renewal, having doubled the year before. Meanwhile, a quarter of respondents reported losing work due to inadequate PI cover. A similar proportion have changed the nature of their work due to strict conditions and limitations placed on them by insurance firms.
Even though high rise residential work makes up less than 5% of the work of two-thirds of firms surveyed, almost one in three could not buy the cover they needed in the wake of the … Read more