In the realm of UK construction, the Design and Build contractual arrangement has emerged as the predominant method, with Specialist Contractors taking on more design responsibilities. This integration of design elements into the overall construction process necessitates Professional Indemnity (PI) insurance for a significant portion of businesses within the construction supply chain. Many contracts now mandate a minimum level of PI cover to mitigate risks effectively.

Following the tragic fire at Grenfell Tower in 2017, the procurement of suitable and cost-effective PI insurance has posed challenges for companies involved in construction activities. Issues such as high excess payments, exclusion clauses related to cladding and fire safety, and the overall expensive nature of policies have rendered obtaining PI cover a daunting task for many businesses. Consequently, certain construction projects have become financially un-feasible due to the unavailability or unaffordability of PI insurance.

Fortunately, the construction PI insurance market has shown signs of improvement in recent years, with the introduction of new capacity leading to increased competition and wider availability of coverage. This positive trend has resulted in reduced insurance rates and the reinstatement of coverage for aspects that were previously excluded.

This comprehensive guide, crafted by Build UK, aims to offer insights into PI insurance within the construction industry. It covers essential topics such as the purpose of PI insurance, the evolving market landscape, and strategies for securing optimal terms in collaboration with your insurance broker.

Stay informed, stay protected, and navigate the complexities of PI insurance effectively with the guidance provided in this informative resource.

To help manage risk and provide additional support to members on insurance matters, FIS has partnered with specialist insurance consultants Construction Shield and AWL Homeproof Ltd. 


Access the guide here