Professional Indemnity
Over the first quarter of 2024, the construction professional indemnity (PI) market has continued to see an increase in capacity and appetite from insurers. This has meant that rates have begun to reduce as competition from insurers increases. The Building Safety Act has prompted insurers to focus their understanding on how firms are managing risk in the face of the change in regulation, with particular attention going to the expanded ‘Principal Designer’ role and what this might mean for insureds’ risk profile, as well as the increased limitation periods brought in by the changes to the Defective Premises Act. With a number of high-profile contractor insolvencies happening across 2023, largely owing to macro-economic pressures and thin profit margins, insurers are looking to interrogate the financial stability of their insureds and those within their supply chain.
Coverage
Insurers’ approach to coverage has remained largely unchanged. We are beginning to see insurers more willing to write limited cover back into policies in respect of fire safety after years of outright exclusions.
Rating
Greater appetite for well managed business saw rates decrease in the first quarter of the year.
