Professionals hit by recession and surge in claims
Architects and engineers are facing 15% rises in professional indemnity (PI) insurance.
Victor Knope, partner at Lloyd’s broker First City, said the number of claims from architects had risen by about 90% over the past year. The surge in claims and the deteriorating economy will lead to rate rises of up to 15% for renewals and new business, he said.
“Professional services is always going to be the whipping boy when things go wrong because they are locked in and are an easy target,” he said. “Insurers are looking with concern at the growth in claims and the growth in the architectural world is considerable.”
Professionals in the property sector were facing the same kind of scrutiny they did during the last property crash, said Knope.
Insurance Times reported last month that accountants are also facing PI rises of up to 15%.