We're all aware that clients increasingly resort to litigation to recover the perceived damages they have suffered out of professional negligence. Contractors from the construction field are especially exposed to this risk. One piece of bad judgement can cause severe collateral damage, so it makes sense to guard against unforeseen incidents that could lead to financially crippling claims.

Professional indemnity insurance for construction contractors protects varied professionals like project managers, operation managers, site maintenance managers, contract managers, structural engineers, estimators et al from claims of negligence. Recently, a contractor had to pay more than £750,000 when a claim was filed regarding incorrect structural calculations & inadequate design of a cold storage room contributing to a consistently high temperature in the factory, and subsequent closure of business. 

Can you imagine the consequences if you had to find the money to pay for this claim personally? Because make no bones about it, as a consultant you can be held personally liable for giving incorrect advice. Furthermore you cannot hide behind the veil of incorporation. Your personal assets and wealth can be put on the line if inadequate or no insurance is held.

Professional indemnity insurance is therefore of the upmost importance to construction contractors. In case of innocent errors or negligence, it will cover the cost of defending a negligent lawsuit and any damages awarded as a result. Furthermore, employers in both the private and public sector now seek assurances that insurances are in place before contracts are awarded. So professional indemnity should not  be seen as an unecessary business expense-rather an effective risk management tool that can help you grow your business. With premiums starting from as little as £165 per annum its probably one of the best investments a construction contractor can make.