By Alex Mitchell
THIS year has seen a rapid change with regards to the availability of insurance covers for the construction industry, particularly in respect of professional indemnity insurance which is required by many construction companies and associated service industries such as structural engineers, surveyors and consultants and project management services.
Following the Grenfell Tower disaster many insurers restricted cover on their professional indemnity policies with regards to cladding risks using panels with combustible cores such as those used to clad the tower.
2019 has seen large numbers of well-known insurers within the construction insurance market withdraw completely from providing professional indemnity cover, even for existing policyholders regardless of the type of work they are involved in. This is leaving companies to make arrangements with alternative insurers, many of whom are restricting the levels of cover they are prepared to give. This has led to significant increases in premiums and perhaps a necessity to use more than one insurer to achieve the level of cover demanded by their clients.
This has come about after some years of poor profitability for insurers in the construction industry sector due to claims. In a recent report issued by one of the UK's leading experts on insurance governance, it stated that the loss of underwriters prepared to insure businesses in the construction sector has led to a tightening of the insurance market conditions, which is unprecedented in the last 15 years. The net effect on insurance value for money for construction associated businesses is potentially not affordable for certain companies.
Wentworth Alexander Ltd have a large portfolio of clients in the construction sector and understand the importance of communicating their clients' risk favourably to meet all legal obligations at the very best premium available. Also, the importance of ensuring the reliability of certain insurers who are entering the marketplace attracted by the possibility of being able to obtain high premiums, irrespective of how well a business is actually managed.
Wentworth Alexander Ltd have developed a strategy to minimise the impact of market conditions for their clients whilst maintaining the cover needed. If you feel you may be affected by the above, contact us for a free consultation on 01327 706874 or 01604 904001 or email firstname.lastname@example.org