Contractors are being forced out of business by a lack of insurance cover or massive hikes in premiums.
Worried companies have contacted the Enquirer in a bid to highlight the intensifying problem of securing Professional Indemnity (PI) cover.
One roofing specialist said: “We are trying to renew our PI insurance at the moment but cannot get near the amount of cover our customers require.
“We work for a lot of big name contractors who demand £5m of cover from us but we can’t get more than £2m.
“If we can’t get that level of cover we won’t be able to win new work. The whole situation is ridiculous.”
A number of insurance firms have quit the PI market completely while those left are hiking prices.
The market has been hit by demands from insurance regulators to stem losses and the continuing fall-out from the Grenfell disaster.
One ground engineering specialist told the Enquirer they have been forced to exit the piling sector due to insurance problems.
Town & Country Vibro director Suzanne Hayes said: “We no longer want to be in the piling market and one of the main reasons is problems getting insurance.
“The PI market is completely crazy at the moment with so many insurance firms pulling out it means we just can’t get cover at realistic prices.
“We are being quoted premium increases of 150% plus.
“A lot of firms in the piling market are European based and can organise their cover domestically on the continent where the insurnace situation is more realistic.”
Another trade specialist added: “The insurance industry always quotes Grenfell as causing this but the markets we work in had nothing whatsoever to do with that.”
Source:
https://www.constructionenquirer.com/2019/07/28/insurance-crisis-spreads-across-construction/