Civils chiefs raise alarm over rampant insurance cost hikes

Grant Prior 6 months ago
Share

The full scale of the growing Professional Indemnity cover crisis in construction has been revealed in a survey by the Civil Engineering Contractors Association.

CECA members are reporting spiralling costs for insurance as the market for cover continues to harden.

The survey revealed:

    • 92% of contractors have experienced substantially increased premiums
    • 85% have seen a reduction in PI insurance providers
    • More than half have seen large increases in excesses
    • More than half have found it impossible to get cover on an each-and-every basis
    • More than 70% have seen their PI insurance costs rise at least 20% at their last renewal, with costs more than doubling for 22%.

CECA Chief Executive Alasdair Reisner said: “There has been a substantial hardening of the insurance market accessible to contractors, which has meant there are fewer insurance providers, narrower cover, increasing premiums, and higher policy excesses.

“We are advising our members as to the best steps they can take to mitigate these challenges, and are recommending that they access information on forthcoming renewal of policies as early as possible, meet directly with their insurers, and identify the appropriate risk management procedures to deploy across their businesses.

“We now hope to work with Government, our members, and the insurance companies themselves, to identify steps that will improve the availability and affordability of insurance in the infrastructure sector.”

Latest news

Winners revealed for £600m Cadent gas deal

Quartet land ten-year programme of infrastructure work
51 mins ago

Balfour Beatty to start £250m Lewisham Gateway phase 2

Forward funding deal with rental specialist Get Living paves way for construction start
32 mins ago

Construction starts climb-back after cliff-edge output fall

Monthly output still 39% or £5.2bn down on pre-Covid level
1 hour ago

B&K in ‘strong position’ after revenue tops £1bn

Bowmer & Kirkland boasts year-end net cash of £447m after profits hit £73m
2 hours ago

Contractors press Government for Sizewell C green light

£300m of early works could begin this year if Government seizes £18bn nuclear build opportunity
2 hours ago

Mace Dragados kicks-off £1.3bn HS2 Euston station build

£400m worth of subcontract packages to be let over two years
19 hours ago

Firms wanted to clear social housing repairs backlog

PfH seeks firms for £490m repairs and voids DPS deal
3 hours ago

Construction work accelerated on £170m of flood defence schemes

Work to start on 22 sites in the next two years
3 hours ago

Final London Super Sewer TBM arrives by barge

Final stretch in sight as TBM Selina prepared for deepest Thames Tideway drive
21 hours ago

Multiplex lands £140m Glasgow office job

Main construction work to start on 13-storey scheme
22 hours ago

DfE readies firms for ‘new deal’ schools building push

Over 30 firms in fight for places as existing £8bn framework comes up for renewal
1 day ago

Student rooms developer gears up to build again

Unite buys Edinburgh site for 300-bed scheme after Covid-work pause
1 day ago

Farringdon office scheme to restart after £140m funding deal

Confidence boost for London market as main contractor due to be appointed shortly
1 day ago

HS2 team unearths Iron Age murder victim

Large wood-henge structure uncovered during Buckinghamshire tunnel site excavations
1 day ago

Hotel and office block plan for Manchester Mayfield scheme

Work to start early next summer on 385,000 sq ft project
1 day ago

South London’s Purley tower approved

Developer Thornsett Group get thumbs up for 17-storey tower mixed-use scheme
1 day ago

Collapsed crane was erected day before tragedy

Wolffkran worker still seriously injured in hospital after 85-year-old woman killed
5 days ago

London council calls up firms for £6.8bn works deal

Tower Hamlets 10-year dynamic purchasing deal will cover new housing, schools and regeneration schemes
4 days ago

Arup to cut 350 UK jobs

Job cuts among 6,000 strong UK workforce to hit next month
5 days ago

Green light for £230m Sky Studios Elstree

BAM, Lendlease and VolkerFitzpatrick understood to be in running for main contract
5 days ago

M&E contractor Ilec goes into administration

Specialist goes down after sharp drop in turnover
4 days ago

Morgan Sindall starts up Salford resi tower project

Work on 23-storey apartment block reignites New Bailey scheme
4 days ago

Amey appoints former Murphy boss as transport chief

Peter Anderson to head-up Transport Infrastructure business
5 days ago

Woman killed in London crane collapse

Four others injured as jib crashes through roof of houses next to modular building site
6 days ago

Bellway asks subcontractors for 5% rate cut

House builder wants suppliers to drop prices from next month
5 days ago

Esh Group unveils 8% staff cut

Nearly 70 jobs to be cut from 840-strong workforce
5 days ago

Bouygues wins £250m London hospital expansion

Evelina London children’s hospital embarks on next phase of development plans
6 days ago

House builders returning to full productivity on site

Vistry reports falling supply chain prices while Persimmon says forward sales up 15%
5 days ago

Firms to get £1,000 for every worker brought off furlough

Plan for jobs promises £6,500 for work placement kickstarters and £2,000 for apprentices
6 days ago

£3bn green boost as construction leads Covid recovery

Investment for energy efficient retrofitting and stamp duty holiday to boost housing market
6 days ago

Contractor services