An introduction into Design and Construction

By Tim Rugg and Matthew McGregor

It’s safe to say that the construction market has been turbulent since the Grenfell Tower tragedy in 2017, which sent a shockwave across the world and underwriting desks, resulting in a rapidly retreating market appetite.

Tokio Marine HCC (TMHCC) stayed the course and maintained a consistent approach and we thought the time was right to give brokers some insight into how we look at these risks with a dedicated webinar.

Hosted by Tim Rugg, Underwriting Manager and Matthew McGregor, Underwriter, in our Professional Risks team, the short and punchy webinar took brokers on a whistlestop tour of what makes a construction PI underwriter tick.

 

With Design and Build contracts becoming increasingly common in the construction sector, Tim explained that while they give the employer one point of accountability, should something go wrong with the project, these kind of contracts open up a whole new realm of liability for the contractor. This is why Design and Construction policies have been specifically designed to give contractors all the protection they need when working under these types of construction contracts.  

What kind of cover is provided, and how can brokers make their clients' risk as appealing as possible? Matthew explained that, first and foremost, they want to know the firm's history and understand its track record. After understanding this, the kind and size of projects they plan to undertake come into consideration, as well as all the risk management processes they have in place to reduce their exposure.

The two underwriters went through the kind of cover that construction clients can secure, such as the negligent acts of subcontractors but, perhaps more importantly, they highlighted what won’t be covered – things like workmanship, where there is no issue with the design or professional work.

Having said that, not all exclusions are blanket. The Professional Risks team are happy to tailor cover to individual needs, particularly SME contractors working on projects worth anything between £10,000 all the way up to £25m, with indemnity limits going as high as £10m.

That’s a pretty big appetite, and it has been consistent throughout the recent hard market. TMHCC remains fully committed to supporting their brokers and this vital part of the economy.

All this and more, can be found in the short webinar below. It’s only 15 minutes of your time but a rich resource on making the most of your construction PI risks. 

For further information about our offering, click here or watch the full webinar below.