Professional Indemnity…..Design and Build, the hidden exposures!

Frequently contractors who offer no design services at all are being asked to carry professional indemnity. A question they often ask is “what risks do I face if I offer no professional services?” The answer is that there are some risks:

• Design alterations: any firm involved in building anything will nearly always need to ‘tweak’ the plans a little in order to make them work. You could call this ‘buildability’ and the problem is that a small alteration here could have a larger knock-on effect, on thus causing a real problem later in the job. A real liability can arise if plans are altered.

• Design checking services: often firms, formally or informally, double check designs to ensure they work. Failure to do so can lead to a claim.

• Temporary works: scaffolding, access roads, perimeter fencing, storage facilities are often part and parcel of a contract but are not designed and are left to the contractor. Such works can be expensive and can go wrong leading to further expense and consequential loss.

• Duty to warn: a duty to warn the client of any problems or errors that the contractor might become aware of is sometimes included in the contract. Failure to warn when one is aware could lead to a liability and a claim under a PI policy.

For help and advice about Professional Indemnity insurance please contact Ben Butler on 0118 9165481 or complete one of our enquiry forms

Author: Adam Lawrence | March 1st, 2012

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Adam Lawrence
Get in touch:   Reading: 0118 916 5480   London: 020 7036 8767