Is it Covered?
A contractor with Public Liability insurance is protected if their activities cause public damage or injury. They are not, however, covered for any faulty designs, specifications or poor advice, and for faults arising from designs they alter.
If a builder directly appoints an architect, they could also find claims relating from faulty designs are their responsibility. All parties in the construction chain can find themselves involved when things go wrong. Even if not at fault, a builder can be dragged into a legal dispute, incurring significant legal defence costs.
Buildings are typically well-advised to buy Professional Indemnity insurance. This will assist with a claim’s defence and cover the legal costs. A good policy should also provide access to expert lawyers.
Larger contracts typically necessitate the holding of Professional Indemnity (PI) cover, and clients might prefer this to be in place from the outset. Professional Indemnity insurance communicated professionalism, but also bear in mind that arranging the right cover may not be an instant process.
Anyone involved in the property chain – from estate agents to surveyors – should have Professional Indemnity (PI) cover, as no business is immune to claims. If advised of one, tell your insurer, even if you question its validity. You cover may have a time limit for claims’ notifications and not meeting it could lead to a claim being declined.
Brokers can help provide the right Professional Indemnity cover for your needs, and can help to gain bespoke teams for specialist projects (where available). Contact your broker today, if you need help.