Non-Compliant Building Materials - Professional Indemnity Insurance Exclusion
You may have heard in the media the many issues relating to the dangers of Non-Compliant Building Materials in particular flammable cladding and the flow on effect this has to Professional Indemnity Insurance Policies. Due to these issues, (such as the cladding building fires in London and Docklands) many of the insurers have reacted by adding policy cover exclusions regarding to claims arising from non-compliant building materials and the insurers are also raising their premiums.
The Insurers reaction of excluding claims arising from non-compliant building materials, is a major concern. Not only does it leave the policy holder exposed to financial loss (self-insuring),for the services you have provided, in past, current and future, (due to PII polices being claims made) it also does not meet your obligations in complying with your licence or registration requirements (please refer to a link to the VBA Mail for further information under the heading Important information about Professional Indemnity Insurance). Please refer this to your licensing authority for further details.
As a building designer, you are likely to be involved in legal action for claims arising from personal injury, or property damage caused by non-compliant building materials, even if you are not held liable, you will be subject to legal costs.
I have noticed that some of the insurers have already implemented the policy exclusions and premium increases for business that are in the building industry (including building designers) to new Professional Indemnity Insurance policies and renewals.
We would like to assure you that our Building Designers Professional Indemnity Insurance Scheme does not have such policy exclusions or premium increases.
I would advise all our clients to make sure that you are aware that not all Professional Indemnity Insurance Policies are the same and you should always thoroughly check through any insurance policies or renewal that you may be considering.