Breaking Down the Risk: PI Coverage for a Specialist Concrete Contractor
Summary
I was instructed by a retail broker to secure Professional Indemnity (PI) coverage for a contractor specializing in large-scale concrete works, including foundations and structural slabs for commercial developments. The client had recently expanded into design-and-build services, taking on partial design responsibility, which triggered a requirement for PI cover under several new contracts. However, the risk had already been declined by multiple insurers in the standard market, leaving the client exposed and at risk of losing key projects.
The challenge
The placement presented several challenges. Concrete work tied to structural elements carries significant latent defect exposure, making it a high-risk trade from an underwriting perspective. The addition of design liability increased the potential severity of claims, further limiting appetite.
Our solution
I began by working closely with the retail broker to gain a detailed understanding of the client’s operations. Rather than presenting the risk broadly, I broke it down into clear components, distinguishing between labour-only work, design exposure, and the types of projects undertaken. This allowed me to present a far more defined and digestible risk profile to underwriters.
The outcome
We ended up winning the client and had them placed with a “A” rated Lloyds market. The terms met the client’s contractual requirements and were delivered within the necessary timeframe, allowing the client to continue trading and secure ongoing projects.
