Design and Construct (D&C)
Professional Indemnity Insurance (PII) is critical financial protection for building contractors and
firms providing construction services. PII covers the cost of any legal action, expenses accrued in
defending allegations and required compensation for claims made against your business where a
third party (client) alleges that your firm has provided inadequate services or poor advice or has
directly or indirectly caused them loss through negligence.
Do we need PII?
Any firm that provides advice, design or consultancy services as part of a design and build project
will need adequate professional indemnity insurance. Even if you are operating as a pure contactor
and under the supervision of other professional firms such as architects, engineers etc. who have
their own PII in place, there is still a risk that a claim could be brought against you. Examples where
claims could be brought could be; using materials that are unsuitable, making a minor alteration to a
design to fit with a project, or failure to check a design to ensure it works with the project.
Most client contracts will require you to hold a minimum level of Professional Indemnity Insurance
cover.
What can a PII policy provide cover for?
A D&C PII policy can provide protection for the following:
- Claims brought against which allege negligence, errors or omissions
- The costs of defending a claim made against the firm
- Breach of Professional Duty
- Dishonesty of employees
- Libel or Slander
- Mitigation costs
- Collateral Warranties
- Loss or damage to documents
In addition to PI Insurance, building contractors should also consider:
Cyber Insurance
A Cyber Liability policy can provide cover for the following:
- Breach notification costs and crisis management expenses
- Legal costs and third-party compensation payment costs in the event of a data breach
- Data recovery and system repairs
- Business Interruption – loss of income because of a data breach
- Theft of money from Cyber Crime
- Insurable penalties and fines
Directors’ and Officers’ Insurance (D&O)/Management Liability Insurance
Directors’ and Senior Executives in the UK are subject to legislation, such as The Companies Act 2006
which contains more than 200 offences. Your personal assets can be at risk should a claim be
brought for alleged wrongful actions and decisions taken while running the business.
Examples could be regulatory investigations, corporate insolvency, breach or mismanagement of
data, corporate manslaughter and employment related issues, such as harassment or discrimination.
Changes to the Building Safety Act 2022 have brought increased regulatory scrutiny and
responsibility to Directors and Managers. The BSA will extend liability for Directors and Managers
that breach Building Regulations or the new Building Control Regime, therefore firms should ensure
they have a good quality Directors and Officers (D&O) policy in place.
Directors’ and Officers’ (D&O) Insurance reimburses directors’ and senior managers for legal defence
costs, compensation payments and investigation costs and can also reimburse the entity should they
pay a claim on behalf of the individual.
Why Choose QPI?
The team at QPI consist of Risk Management, Legal and Insurance specialists who have a wealth of
experience in arranging insurance programmes for the construction sector. We pride ourselves on
going the extra mile, in fact, we thrive when given the opportunity to help with anything complex or
difficult!
There’s no complacency here! We understand how important cost is and are passionate about
getting the best deal for our clients. This starts from really understanding what your business does
and making sure we keep up to date with any changes, ensuring that your business is not exposed to
any gaps in cover. We then use our knowledge of the market and relationships to secure the best
cover at the best price.
For a free, no obligation review of your current insurance arrangements,
contact hayley.dawson@qualitypi.co.uk, or call 07955 270487.