Insurance For Construction Contractors

The concept of professional indemnity insurance indemnifies the insured party against legal liability arising by availing professional services.

For construction contractors, the importance of PI insurance becomes more relevant as a series of activities has to be carried away while offering services to the end user. In the context of the construction industry, these activities include architectural and engineering design, cost monitoring and control from quantity surveyors, and procurement and management from project managers. Areas including design, particularly on a design and build project, are not included in professional construction works of a company. But, usually many companies violate and indulge their services in these areas also, which is not correct. And chances of making mistakes for construction contractors are very high here. It is vital that parties providing these services maintain professional indemnity insurance, as their resources are unlikely to be sufficient to meet anything other than minor claims. This is recognised by employers who frequently make PI cover a condition of the contract or appointment.