Insurance brokers W Denis have seen a rise in Professional Indemnity Insurance (PII) rates as the financial impact of Covid-19 takes its toll on the PII market.
Online PR News – 19-March-2021 – Leeds, West Yorkshire – Insurance brokers W Denis have seen a rise in Professional Indemnity Insurance (PII) rates as the financial impact of Covid-19 takes its toll on the PII market. Whilst the state of the PII market is posing challenges for all professional service firms, it has been a particularly difficult time for the construction and property industry.
The increase in PII premiums, as well as factors such as furlough, reduced working hours and the probability of pay cuts, all while trying to enforce social distancing, has contributed to the current crisis in the industry.
As a result, the impact of the past year on the current claims environment is now under close scrutiny. This has resulted in many insurers reviewing premium rates and has led to many businesses reporting that they can no longer secure adequate cover.
A spokesperson from W Denis said: “As Professional Indemnity Insurance brokers, we’ve seen a huge rise in enquiries from businesses in the construction and property sector. PII rates have been on a steady increase since October 2018 following the Lloyds Decile 10 review and we expect this to continue throughout 2021.”
“However, new steps to help relieve the crisis are now in place.”
The Construction Leadership Council Professional Indemnity Insurance Group lead Samantha Peat said: "we are speaking to the UK Government and insurers to find ways to help businesses that could otherwise face an uncertain future due to the nature of their PII renewals. We want businesses from across the industry to give us their views – whether you are affected or not – to help us shape the way we prepare a response from the whole sector."
From 12th March 2021, companies will be able to access a CLC survey. The subsequent results of the responses will be used to inform ongoing work to support the sector.
W Denis are an independent insurance broker with offices across the UK and Europe.
For advice and information on Professional Indemnity Insurance policies and services, visit wdenis.co.uk.