Ever since the rise in contractor led projects and the development of in-house design professionals, it has become essential to consider the importance of Professional Indemnity Insurance (PI). With firms increasingly taking on some form of design liability, even where the design element is sub-contracted, the potential for claims in this sector has risen. With no mandatory policy requirements for contractors, it can often be confusing as to exactly what cover is required. This is coupled with the fact that contracts often contain various obligations as to the level and scope of PI which must be held. This combination of factors means that an experienced broker who can provide a tailored service, specific to your firm’s needs, is essential.

What Insurers Look For

Contractors can take on such a wide variety of activities and this means that insurers will often firstly focus on exactly what elements of design and construction a firm undertakes and in what capacity. For example, a firm that employs in house professionals to carry out all design work and also constructs from that design, will often be in a higher risk category than a firm who mostly carries out construction from designs which are not their own.

In connection with this, the industries within which a contractor works are also an important consideration for insurers. Work for private individuals, for example the design and construction of a residential house, is seen to be on the low to medium end of the risk scale; where as engineering projects on bridges and tunnels and industrial work in connection with refineries & petrochemical installations, is usually classified on the higher end of the risk scale.

Insurers will also consider a variety of other factors when making a decision as to whether to offer terms and if so, on what basis. These considerations can include: the qualifications and experience of both the directors and qualified / non-qualified staff; the turnover of the firm including contract sizes; whether the firm undertakes any overseas work; whether the firm has any retroactive exposure for which cover is required and also whether any technology being used is the market standard or is new and emerging.

Our Products and Services

PYV Limited are PI experts with over 35 years experience in the field and our strength is in our size; as a Lloyd’s of London broker, based in the City, we have face-to-face access to almost all insurers. However, as a privately-owned independent broker we retain the friendly personalised service that you require from your insurance intermediary.

Although we specialise in Professional Indemnity we have also built up a range of complimentary commercial insurance products so that we can meet all your firm’s insurance needs.

Professional Indemnity (otherwise known as errors and omissions)

Ensuring you have sufficient Professional Indemnity insurance in place should be a key part of your risk management strategy. Negligence claims can not only cause a one-off financial loss but can also disrupt business relationships and adversely impact your reputation.

Example Claim: A client is provided with a design and build service for the construction of a disabled lift system in a local school; the design is sub contracted out to a specialist in this field. Unfortunately, after failure of the lift system, damage is caused; the client then claims against the contractor and the claim is successful. Fortunately, in this case, the contractor’s insurer is able to subrogate the claim against the specialist designer.

Not only does this case show the importance of having adequate Professional Indemnity Insurance in place, it also shows the importance of ensuring that any sub-contractors used also have the necessary insurance to cover any potential claims.

Office Insurance

We have an arranged an exclusive Office Combined scheme for our clients to ensure all their property is fully covered.

• Offers a broad coverage on office content against theft, loss and breakdown
• Policy also includes employers liability and public liability

For more information on our Office Insurance click here

Directors’ & Officers’ (D&O) Insurance

• Covers the Directors and partners from claims made against them in their capacity as a company executive.
• Covers defence costs as well as damages awarded
• Policies can include cover for breach of duty, contract and warranty defamation, misleading statements etc.
• We can also offer a Management Liability Portfolio which includes Employment Liability cover and Corporate Legal Liability

For more information on Directors’ and Officers’ Insurance please click here

Management Liability Portfolio (MLP)

• The policy includes D&O, Employment Liability Cover and Corporate Legal Liability

For more information on our Management Liability Portfolio Insurance click here

Although these are the main policies most firms require, if you have any additional insurance needs (Keyperson Insurance, Employee Crime, etc) we are also able to assist you with these requirements.

The above products and services will be subject to individual policy terms and conditions.