The full scale of the growing Professional Indemnity cover crisis in construction has been revealed in a survey by the Civil Engineering Contractors Association.
CECA members are reporting spiralling costs for insurance as the market for cover continues to harden.
The survey revealed:
- 92% of contractors have experienced substantially increased premiums
- 85% have seen a reduction in PI insurance providers
- More than half have seen large increases in excesses
- More than half have found it impossible to get cover on an each-and-every basis
- More than 70% have seen their PI insurance costs rise at least 20% at their last renewal, with costs more than doubling for 22%.
CECA Chief Executive Alasdair Reisner said: “There has been a substantial hardening of the insurance market accessible to contractors, which has meant there are fewer insurance providers, narrower cover, increasing premiums, and higher policy excesses.
“We are advising our members as to the best steps they can take to mitigate these challenges, and are recommending that they access information on forthcoming renewal of policies as early as possible, meet directly with their insurers, and identify the appropriate risk management procedures to deploy across their businesses.
“We now hope to work with Government, our members, and the insurance companies themselves, to identify steps that will improve the availability and affordability of insurance in the infrastructure sector.”