n The last word

LIFE OF PII

THERE IS DIFFICULTY WITH THE ISSUES AND COSTS MEMBERS FACE IN ACCESSING PROFESSIONAL INDEMNITY INSURANCE.

As a practitioner and business owner, I am only too aware of the issue, and cost, of achieving adequate professional indemnity insurance (PII) cover at present. From our central role in the Construction Industry Council (CIC), which I currently chair, and other groups, we know we are not alone in this respect and it is a major issue for all professionals as well as main contractors and specialist subcontractors. While I was President of the Society, I received many calls on this issue and continue to do so. We have engaged with the insurance industry extensively and it would appear that the issue is not likely to recede in the immediate future. They advise us the issue primarily relates to supply and demand as a number of underwriters have simply exited the market. In addition, there are undoubtedly concerns to limit fire safety exposure for obvious reasons and legacy matters relating to valuations claims. This has resulted in major difficulties for members across a number of professional groups in terms of significant increases in premium costs, despite practitioners frequently having had no previous claims. They are also having difficulties in achieving the type of cover they require – for example, cover for “each and every claim” as opposed to “in the aggregate” and indeed the limit of cover they require. Working with the OGP

In addition to engaging with the insurance industry, we have also engaged with Government and in particular the Office of Government Procurement (OGP). For their part, the OGP has also engaged extensively with our industry, the insurance industry and the State Claims Agency. In our most recent meeting with the OGP, it is clear that they have recognised this as a significant issue for the industry and are actively reviewing a range of potential measures (if not solutions) that may assist industry in continuing to provide services to public sector clients. We have recently made a submission to them in relation to the flexibility they will need to provide on public sector projects, including a detailed review of “Liability caps” which has been an issue for practitioners for many years. However, while the public sector is looking at measures as to how to deal with this issue and potential solutions, it now behoves us to outline to the private sector the issues that are being encountered. These include, in particular, client bodies, funders and indeed the legal profession and that will form part of our engagement moving forward. As part of this process, the Society has recently conducted a tender process for a PII partner. This process has now been completed and we look forward to working with our chosen partner, Glennon Insurance, towards educating members in relation to PII and engaging extensively with industry and other stakeholders in the immediate future. Let me be clear, our engagement may not lead to reduced premia for members. However, it is our hope that this engagement will mean that members will have a forum to review their specific issues associated with PII and ensure that they are putting their best foot forward whilst endeavouring to secure their required PII cover. As always, your input and sharing of issues is always welcome so please feel free to reach out to me or the Executive team with regard to any issue. Feedback is absolutely critical to all we do.

THE LAST WORD

Micheál Mahon Immediate Past President