PI insurance ‘cut by up to a fifth’ for some contractors
Summary
Gallagher reports that professional indemnity insurance premiums for well-performing contractors and consultants have fallen by 15% to 20% year on year, reflecting improved insurer capacity and more competitive market conditions. The report says underwriting remains selective for certain technical exposures, including structural integrity risks and supply chain resilience.
Why it matters
PI insurance availability and pricing can affect the viability of contractors and consultants involved in residential projects, which in turn influences project delivery and risk allocation. Surveyors may also see knock-on effects where insurers scrutinise technical oversight, design management and structural risk more closely.
Key points
- Average PI premiums for well-performing firms have reduced by 15% to 20%.
- Market conditions have eased after a period of difficulty following Grenfell and concerns linked to the Building Safety Act.
- Insurers remain cautious on structural integrity exposure, especially concrete transfer slabs.
- Pricing is increasingly based on governance, technical oversight and financial resilience.
- Further market improvement may depend on capacity, claims trends and insurer appetite.
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