The following article is in response to a recent publication by the construction industry. “Contractors hit by spiralling PI insurance costs“, in which they outline some of the reasons behind the rise in premiums. There is however a silver lining, companies who have proven methods to mitigate risk and can demonstrate this through their safety track record may be able to negotiate their premiums lower. By using a versatile integrated tool such as Flex Manager to accomplish this your company has all the tools readily available to implement a modern HSEQ system to meet your needs. Contact us today and see how we can proactively assist your company.
The cost of professional indemnity insurance is becoming a major challenge for contractors, according to research published today by the Civil Engineering Contractors Association (CECA). Original Article
In recent months CECA members have reported spiralling costs for professional indemnity (PI) insurance as the market has hardened.
CECA polled its members on the issue and found that in the last five years:
• 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 (where the limit is payable in respect of each claim).
More than 70% of contractors polled said that their PI insurance costs rose by at least 20% at their last renewal, with costs; 22% said that the cost had more than doubled.
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.”
Information is power, and transparency is crucial. What happens if you don’t have access to that power?
2020 is the time to embrace the powerful tools you have.
Flex Manager is the best ally to simplify your life, deal with requirements and mitigate the risks.
The Construction Index (2020). Contractors hit by spiralling PI insurance costs. [online] Theconstructionindex.co.uk. Available at: https://www.theconstructionindex.co.uk/news/view/contractors-hit-by-spiralling-pi-insurance-costs [Accessed 30 Jan. 2020].