Building inspectors have already been forced to cease trading and now contractors can’t get cover too
Contractors are being forced out of business lines, as they cannot get the professional indemnity insurance (PII) they need to operate.
According to the Construction Enquirer, concerned companies have contacted the publication in a bid to highlight the problem.
They say are being hit with huge premium hikes - specific examples include increases of over 150% for piling firm Town & Country Vibro. It’s director Suzanne Hayes said the company no longer wants to work in the piling market – one of the main reasons is the issue of getting insurance.
The publication also spoke to a roofing specialist that was struggling to get PI insurance to meet its customers needs. Major contractors demand £5m of cover, but it is unable to secure more than £2m. It fears that it won’t be able to take on new work without this, stating that “the whole situation is ridiculous”.
It follows Insurance Times revealing that Aedis Regulatory Services had filed for liquidation after failing to secure its PI cover at renewal. It is part of a wider dilemma in construction.
A number of insurance firms have quit the PI market altogether, while those left are hiking premiums. The market has been hit by demands from the regulator as it attempts to account for losses after the fall-out over the Grenfell Tower fire.
Insurance Times spoke to industry experts about what could be next in this long-running saga. See what they said here.
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