The Grenfell Tower fire has highlighted the potential exposures to Cladding Company Professional Indemnity Insurance providers from poor specification of cladding materials and with no formal reports yet available for review, no one can be sure where any eventual Professional Indemnity claims will end up landing.
Insurers in this area are withdrawing renewal offers and restricting underwriting of new business until more is known about who will eventually be found at fault in this recent disaster. Meanwhile Cladding companies are being left out in the cold when it comes to renewing essential insurance cover.
Why are Cladding Companies being penalised?
Many Cladding Companies do give advice on design and specification of the products they supply and install. This may follow Architects guidance and may just be detail design on fixings and sealant, but any element of advice comes with a risk of lawsuits if something goes wrong. Solicitors working for the customers will use a scatter-gun approach, trying to bring every party to a contract into a ‘Globa’ claim and seeing where the mud sticks. Defending these claims is a key element of Professional Indemnity insurance cover and costs can quickly accrue into tens of thousands, so insurers can incur large losses even before blame is established. If the lawsuits are successful, substantial damages will follow adding to insurer’s losses.
Is competitive cover still available?
Yes it is, we work with an experienced London Market Insurer that has excellent security and fully understands the construction industry. They have developed a new questionnaire in the wake of recent events that allows them to understand your business and potential exposures. In this way Cladding Company Professional Indemnity Insurance quotations they provide are fair and accurately reflect the risks to your business.
What types of work will make my premium higher?
Typically, our insurers will be looking more carefully at work where you have undertaken all your own design or are fully responsible under a contract for the design work. This also includes specification of materials. Where this is the case, the more information on your experience in this work, the internal risk management & supervision of work and of those external consultants you use, the more realistic Insurer can be with pricing.
What other factors will affect the premium?
The other main factors that driver premium costs for Cladding Company Professional Indemnity |Insurance are:
- Turnover – This indicates the amount of work being undertaken and therefore the amount of risk insurers are accepting. If your business has contracts that extend over a period of 12 months or more, please speak to us as we can help smooth premium cost over multiple policy years.
- Design Work splits – Insurers rate the different disciplines carefully so be sure to give an accurate split in disciplines. If you sub-contract our more technical elements be sure to explain to who and how you check their credentials, where they hold Professional Indemnity Insurance and to what minimum levels of cover.
- Contracts – Insurers will consider the Total Contract Value and type of work for you biggest contracts, both over the last three years and for the next 12 months. Make sure to include this information in any form.
- Your Professional Design Experience – Provide a CV for members of your senior design team if you can.
- Your claims record – If you have had prior claims explain the circumstances and even more importantly any steps you have taken to prevent a re-occurrence of a claim.
How to guarantee to obtain a Cladding Company Professional Indemnity Insurance quotation.
Please speak to Paul Evans who is our Construction Professional Indemnity expert. We are working with an insurer who is quoting Cladding Company Professional Indemnity using their newly developed proposal form. you can email us at firstname.lastname@example.org or call 0845 431 0448 and we will respond as soon as we can.
What our customers say about us:
"When we had problems with our existing broker who gave us very little support following a claim, we were introduced to Butler Evans who acted swiftly to help us with expert advice on dealing with the fallout and provided new insurance quotations that properly covered us for our risks at a fair cost. Butler Evans always respond in a professional and timely manner and we have no hesitation in recommending their services"
Alastair Brennan, Director Kelvin Group.