The CLC’s second annual survey of the issue found that the cost of premiums continues to hurt construction companies and limit companies’ ability to work to restore building safety.
The inter-professional survey did not reveal any real relaxation in the PII cover available to the profession since the group carried out its first survey a year ago. The 2022 survey, which received 652 responses, found that although residential work in skyscrapers accounts for only 5% or less of the workload for two-thirds of companies, many still suffer from a increased premiums and deductible levels, coupled with far-reaching coverage exclusions. .
The PII group of the Construction Leadership Council (CLC). is particularly concerned that the situation is having a disproportionate effect on the ability of SMEs to undertake work requiring fire safety cover, pay their premiums and settle their deductible in the event of a claim.
The results revealed:
- 17% of respondents pay more than 5% of their turnover for their annual bonus; 5% pay more than 10% of their turnover for their bonus.
- 22% of respondents are still unable to buy the coverage they want or need (a slight improvement from 29% in 2021).
- 68% had coverage restrictions for fire safety (as in 2021).
- 24% lost their job due to inadequate PI insurance (compared to 31% in 2021).
- 30% have changed the nature of their work due to inadequate PII (compared to 29% in 2021).
- 42% said the PII shopping experience was significantly worse than when they last renewed.
- 33% had been refused insurance by three or more insurers. (It was 44% in 2021.)
- 67% obtained a claims deductible equal to or less than 2% of their turnover. (64% last year.)
- 12% have a deductible greater than or equal to 21% of their turnover. (4% said this last year.)
Samantha Peat, managing director of the insurance company Wren Managers, is president of the CLC PII group. She said: “Market conditions for PII cover remain extremely challenging for construction companies, particularly SMEs, and given rising energy prices and material inflation, we are going through a worrying time. The CLC PII group will continue to work with the government and insurers to try to calm the situation.