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13 Jun 20221 minute read

CLC survey: PII premiums “disproportionally” affecting SMEs

ECAtoday
CLC survey: PII premiums “disproportionally” affecting SMEs

The Construction Leadership Council’s (CLC) annual professional indemnity insurance (PII) survey has revealed that almost a quarter (24 per cent) of respondents had lost work as a result of restrictions on the level of their cover relating to cladding or fire safety.

Construction News reports that nearly a quarter (22 per cent) of respondents said they were still unable to buy the cover they want or need for jobs, according to the survey, which showed 40 per cent of firms had a worse experience of buying insurance this year than in 2021.

For those able to buy insurance, almost one in five (17 per cent) people said they were paying more than 5 per cent of their turnover for their annual premium – with one in 20 paying more than 10 per cent.

Furthermore, more than a third of respondents had been declined insurance by three insurers or more, which, although significant, represented an improvement on last year’s total (44 per cent).

CLC PII Group lead Samantha Peat said, “The market conditions for PII cover remain extremely tough for construction firms, particularly SMEs, and in light of energy price rises and materials inflation, these are worrying times. The CLC PII Group will continue to work with government and insurers to try and ease the situation.”

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