CONTRACTORS HIT BY SPIRALLING PI INSURANCE COSTS
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).
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.”
DEMAND FOR CONSTRUCTION WORKERS CLOSE TO 20 YEAR HIGH
The staff shortage in construction is continuing to bite, with 33,000 job vacancies for the period of April to June according to the latest figures from the Office for National Statistics. It is the s ...
2021 BUILDING MATERIALS SHORTAGE: WHAT IS THE PRICE OF BUILDING MATERIALS?
Covid-19, Brexit and booming demand are combining to drive up prices for the essential materials the UK’s construction sector desperately needs. Bluebeam takes a look at the 2021 build ...
MORE THAN 160,000 STILL FURLOUGHED AT END OF APRIL
More than 160,000 construction workers remained on furlough at the end of April, new figures have shown. Data released by the government this week showed that 166,600 roles in the sector were bei ...
CONSTRUCTION LEARNERS TO GET SITE SKILLS CARDS
Construction trainees will soon be given their own skills cards to help oversee work placements. The new Industry Placement Card will help support learners transitioning from the classroom into the ...
NUMBER OF FURLOUGHED CONSTRUCTION WORKERS FALLING FASTER THAN WIDER ECONOMY
Number of furloughed construction workers falling faster than wider economy Latest HMRC data shows size industry’s furloughed workforce shrank by 15% in March The numbe ...
WILL THEY COME BACK? WHY BRITISH CONSTRUCTION LOST ITS EASTERN EUROPEAN WORKFORCE
In recent weeks, a persistent rumour has been circulating about migrant workers in construction. The specifics differ, but the central premise is the same: ‘foreign workers have taken the govern ...