The terrible tragedy, which occurred art Grenfell Tower in 2017 has put both buildings regulations and fire safety in the spotlight, this along with the high-profile construction company failures in subsequent years has shaken the Professional Indemnity Insurance (PII) Market to the core.
There is currently huge uncertainty, particularly in respect of construction related business, as to the correct pricing and cover considerations required to enable insurers to continue to support the PI market. It is no secret that PI insurance in general has been one of the underperforming business lines across the industry in recent years and there is a drive throughout the market to make these lines profitable, long term. The disaster at the Grenfell Tower has led to criticisms of both building regulation and fire safety, leading to grave concerns about the competency of the construction industry in general. Couple that that high-profile company failures, with a hint of more to come, it is understandable that some insurers are carefully reviewing their position.
Late in 2018, Lloyd’s intervened in the PII Market due to poor finical performance and sustained losses in the sector. This intervention resulted in insurers closing their book and some stopped writing Professional Indemnity cover completely.
The Professional Indemnity market has lost dozens of insurers since 2018 and until now, there have not been any new entrants to take their place, it is unlikely there will be many throughout 2020. This reduction in capacity has resulted in a significant shift in the PII market causing the construction industry to face higher premium, restrictive cover and sometimes the inability to source viable policy at all.
Despite these issues, West Midlands based SPV group, the Building Refurbishment Specialists with the guidance of the local insurance broker RV Wallis have secured another 12 months Professional Indemnity Insurance at a competitive rate along with indemnity limit of £5 million.
Brett Congrave, Area Sales Director of RV Wallis stated:
“We were able to secure this cover for SPV Group because insurers recognise that their standards and quality control procedures are exceptional helping to control, reduce and more importantly avoid losses, this is borne out by the amount of company accreditations not least ISO 9001 which insurers regard highly.”
SPV Commercial Director Kate Whatley commented:
“Ensuring that we are fully covered in all areas of insurance is a top priority for SPV. We always endeavour to ensure that we offer out Valued Clients the full peace of mind that we have suitable covers in place in regards to the large scale refurbish works we are undertaking.
As we provide expert advice and consultancy to our Clients, it is imperative that we hold £5,000,000 Professional Indemnity so our Clients can be assured if complete confidence in our services.
This Year, this has become far harder to obtain Professional Indemnity Insurance s we are regularly within the cladding market but with the assistance of RV Willis and our excellent claims history we were able to ensure this was sourced with an A rated insurer for a further 12 months. “