Construction leadership council professional indemnity insurance survey 2022
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A link to the 2022 CLC PII survey available until April 29 is given here: https://www.surveymonkey.co.uk/r/7CJMDG8 |
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[edit] Construction Leadership Council Professional Indemnity Insurance Survey
Professional Indemnity Insurance has been rising since the 2017 Grenfell Tower fire in London, as building envelopes became seen as high risk insurance issues. meanwhile the demand for remediation works as a result of energy requirements or safety conditions has increased. The Construction Leadership Council started running a yearly survey on the subject to engage with the industry and bring the issue to the attention of the government.
“The construction industry is heading into another difficult period, with the cost of energy and building supplies increasing, and our sense is that the problems around PII cover for cladding and fire safety are no better. We are continuing to engage with the UK government and insurers to find ways to help businesses that could otherwise face an uncertain future due to the nature of their PI renewals. We want businesses from across the industry to give us their views – whether you are affected or not – to help us shape the way we prepare a response from the whole sector.”
CLC Professional Indemnity Insurance Group lead Samantha Peat said prior to the second survey
[edit] Construction Leadership Council Professional Indemnity Insurance survey summary 2021
The results of the survey in 2021 revealed that:
- Over 60% of total survey respondents had some form of restriction on cover relating to cladding or fire safety
- One in three of total survey respondents had a total exclusion in place for cladding claims
- One in five of respondents had a total exclusion in place for fire claims
- Over a quarter of total survey respondents had lost jobs as a result of inadequate PI insurance
- One in three respondents couldn't do remedial work even if they wanted to
- Almost a quarter of total survey respondents changed the nature of their work due to inadequate PI insurance
- The majority of respondents buy £10m or less cover with very few buying over £20m
- Almost half of respondents had been declined insurance by three insurers or more
- Two-thirds of respondents were carrying a claim excess imposed upon them by their insurers
Premiums have increased nearly 4-fold since the last renewal, having doubled the year before; the average rate is 4% of turnover but one in five who gave figures are paying more than 5% of their turnover for their PI insurance
Andy Mitchell CBE, co-chair of the CLC at the time, said: "The survey results confirm that there is a widespread problem for many firms in being unable to obtain essential PI cover, which is having an impact on the ability of the industry to work, and undermining efforts to deliver remedial work to ensure building safety."
[edit] Construction Leadership Council Professional Indemnity Insurance survey 2022
The Electrical Contractors Association (ECA) shared with members the announcement of the 2022 survey noting that members will have just renewed their PI policies in the face of increasingly difficult market conditions. This was further evidenced by the Construction News report in February 2022 highlighting that PI insurance for some small firms has soared in recent years by as much as 1,500 percent in some cases, making business almost untenable.
A link to the CLC PII survey for 2022 is given under the image above and here:
https://www.surveymonkey.co.uk/r/7CJMDG8
The survey should be Please completed by Friday 29 April - the details of the level of cover and excess will be needed.
The results will help ECA, as a lead contributing member of the CLC, to tell the Government on behalf of the industry about conditions in the PI market for construction and facilities management.
ECA also has a general guide to Insurance and PI Insurance outlining the conditions and approaches many Members are taking in order to minimise the adverse impact of current market conditions. This can be accessed by members here:
In a separate announcement from CIOB Caroline Gumble, Chief Executive of CIOB responded to news that Andy Mitchell CBE will step down as CLC's co-chair in the Spring 2022:
"We would like to thank Andy for his leadership over the past three years. He has successfully navigated a completely unprecedented situation for the industry during the COVID-19 pandemic, overseeing a restructure of the CLC, pioneering their Talent Retention Scheme and delivering their Roadmap to Recovery. His work has helped pull together professional and trade bodies in one direction to change for the better. We wish Andy the very best for the future and look forward to working with his successor.”
--ECA
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