Professional Indemnity

During the first half of 2024, the construction professional indemnity (PI) market continued to see an increase in capacity and appetite from insurers. This has meant that rates have reduced as competition has increased.

The Building Safety Act has prompted insurers to focus their understanding of 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.