“ Contractors need PI even if they carry out no professional work themselves ”
contractor keeps the design in- house.
PI insurers charge less where contractors sub-contract out the design work, for example where the design exposure is contingent. Of course, they rely on the contractor to ensure that the design sub-consultants carry adequate PI themselves. Contractors may also incur design exposures when they have no contractual
responsibility for design, in the sense that they may have input to design consultants’ work or, more likely, design changes as construction progresses, following problems encountered on-site.
Contractors have a vast amount of practical on-site
experience which professionals do not always enjoy. But contractors are not design professionals, so it is at this interface of practical experience with professional knowledge that things can go wrong.
Professional designers are not unknown to design something that cannot be built! And the contractor’s input might not achieve everything intended. If it goes wrong, everybody will get sucked into the claim. So, contractors can encounter design liability, not only by undertaking in-house design but through a Design & Build contract as well as through non-contractual design input. This liability needs to be protected through a D&C policy.
Liability example
A contractor won a tender to build a commercial building. It sub-contracted out the design work to a firm of architects and structural engineers. Incorrect design led to the foundations being laid out incorrectly. As a result, the work had to be re- done which led to increased costs and a delay in the project.
If the client brought a claim in this situation, the contractor would look to the professional firm to provide an indemnity. But what happens if the professional firms’ PI policy doesn’t respond or is inadequate? It might have lapsed, or cover might have been refused due to policy issues.
The contractor is left fully exposed as the client will look to them to resolve the matter. After all, the contractor took on the design responsibility when winning the contract.
Take a new look t Ansvar Reaffirming our promise to you We’ve refreshed our look but our c mmi men
newlook at Ans ar
ming our promise to you shed our look but our commitment to you
stays the same. me. If you have clients or bus n
tow rganisat
ions
connected lifestyle markets, talk it over with us. o
Committed... nt p
investment policy.
s or busini ess oppo uniti s in the church, charity or emarkets, t lk it over with us.
portunities in the church, charity or
Committed... to working in the interests of charities, churches and voluntary organisations.
ng in t e intere s of charit s, church
d... to a clearly defined ethical trading and poli
T r nge of polici a clearly defin d ethic l trading and
Committed...mm ed... to providing the right insurance cover through our CONNECT range of policies.
www. The Connect Range The Connect Range
Mem Finan
ber of: Associ d
Authorised and Regulated by the Financial Services Authority (FSA)
Member of: Association of British Insurers (ABI) Financial Ombudsman Service (FOS) Authorise
l:
ansvar.insura a
cial Ombu d
Business division of: Ecclesiastical Insurance Office plc. Registered Office: Beaufort House, Brunswick Road, Gloucester GL1 1JZ Registered No. 24869 England All content © Ecclesiastical Insurance Office plc 2011
Business division of: Ecclesiastical Insurance Office plc. Registered Office: Beaufort House, Brunswick All content © Ecclesiastical Insurance Office plc 2011
MARCH 2011 insurancepeople 13 wwwans ar.
Ansvar Insurance, Ansvar House St Eastbourne, East Sussex, BN21 3 Te
el: 0845 60 20 999 or 0132 nce@
w..ansvar.cr.co.uk
Ansvar Insurance, Ansvar House St. Leonards Road, Eastbourne, East Sussex, BN21 3UR Tel: 0845 60 20 999 or 01323 737541 EmaiEmail:
ansvar.insurance@
ansvar.co.uk
providing the right insurance c ver through our and
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36