Professional Indemnity Insurance — A Positive Result
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 with 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 financial performance and sustained losses in the sector. This intervention resulted in insurers closing their books 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 a viable policy at all.
Despite these issues, West Midlands based SPV Group, the Building Refurbishment Specialists with the guidance of local insurance broker RV W these issues, West Midlands based SPV Group, with the guidance of local insurance broker RV Wallis have secured another 12 months Professional Indemnity insurance at a competitive rate along with an indemnity limit of £5,000,000