At WTW, we understand the unique challenges faced by all the stakeholders in the construction industry and offer a set of distinct products to safeguard the projects and reputations of all industry participants.
Key features and benefits
- Tailored solutions to protect against unique risks in the construction industry.
- Specialist team dedicated to providing comprehensive coverage solution options.
- Specialism in Single Project Professional Indemnity (SPPI) and Owners Protective Professional Indemnity (OPPI) in addition to more traditional, annual ‘practice’ programs.
Project-specific solutions
Discover how WTW can help you navigate the complexities of project specific professional indemnity insurance, offering insights and guidance every step of the way. We have experience of placing SPPI and OPPI products for our clients, providing economically priced, robust solutions tailored to the needs of a project.
PI insurance is traditionally purchased on an annual basis. However, in some cases, the arrangement of a longer-term, project solution may be more suitable.
Advantages:
- Shields annual corporate policies from project-specific claims.
- Provides dedicated policy limits to a project that cannot be eroded by claims from elsewhere
- Provides extended coverage periods to provide long term, cost and coverage certainty.
Disadvantages:
- May feature more restrictive terms compared to traditional policies.
- Faces capacity limitations in challenging market conditions.
In seeking SPPI from insurers, geographical access point is increasingly important. We understand the need to capitalize on regional divergence of appetite and will seek insurer capacity on a global basis where required, to maximise the options available.
Enhance your project's protection from design error with Owner’s Protective Professional Indemnity. Although a widely mis-understood product, when placed correctly OPPI can provide value to all the participants on a project. OPPI can help cover the potential for large losses arising from professional errors by the design team or can ‘drop down’ to cover losses that fall outside the scope of the design teams’ insurance due to underlying erosion from elsewhere or other policy coverage issues, including non-maintenance due to insolvency. Introducing OPPI into the conversation when negotiating contract terms with designers can unlock value and bring contracts to a close more quickly, potentially saving you time and money.
Our services
Account management and placement services
We deliver specialist advice on local regulation and PI market insight to support the design and delivery of PI programmes for our clients. We pride ourselves on our deep industry insight and strong client focused relationships. Our team is committed to negotiating robust, cost-effective insurance solutions ensuring you receive tailored solutions that address your specific requirements.
Claims advocacy
Our highly experienced Claims Advocates work with you to ensure every notification is proactively managed from initial advice through to conclusion. We handle our clients claims from beginning to end in-house, negotiating directly with insurers and their advisors to ensure the best possible outcome.
Risk management
Our dedicated team of risk management specialists helps you fine-tune and implement best practice procedures. Being able to demonstrate effective risk management is vital to securing favourable terms from insurers. We can work with you to manage those contractual obligations that create insurable liabilities under a PI policy.
WTW industry knowledge and global reach
We're on a mission to secure insurance agreements that truly favour our clients, prioritizing not just competitive terms but also clarity and relevance.
Our PI practice sits within our wider Financial, Professional, and Executive risks line of business, which offers the advantage of increased exposure to our insurance and industry specialists. Our wider risk and broking lines of business help add to the accessibility of insights from industries and regions across the world.
FAQs on professional indemnity insurance for construction
Like all insurance, the availability of PI insurance is cyclical. Low levels of capacity increase premiums and narrow coverage. But where there is an abundance of capacity, broader coverage can be available at a reduced cost. So, some fluctuation is unavoidable. However, to smooth out those premium peaks and troughs we ensure our clients build deep carrier relationships and we carefully manage market engagement when we need to drive competitive tension.
Yes, you should still consider PI for at least 3 reasons:
- You will likely be required to maintain PI coverage under your D&B contract.
- Even if your sub-consultants carry PI coverage, it would still be beneficial to have your own PI insurance coverage to defend you. Afterall, you are highly likely to be vicariously liable for the work of your sub-consultants, if their work is negligently performed.
- Broad PI coverage for a Design and Build Contractor can provide 1st party rectification coverage for your own additional construction costs relating to a sub-consultant design error. This can be a useful way to get a project back on track. while a concurrent claim against the sub-consultant for their negligence continues.
Yes and No, You would not purchase a traditional PI policy if you were not performing professional services yourself. However, you should maintain a strong interest in the PI insurance being maintained by your professional advisors. And if your project is complex, explore SPPI and OPPI options to consider PI coverage, dedicated to your project.
