Along with Grenfell Tower’s demise in June was the unearthing of multiple issues, including those related to cladding. Now that particular area of construction is crying foul, with cladding specialists claiming they’re being charged unreasonable amounts for professional indemnity (PI) insurance in the aftermath of the fire.
“Insurance companies are hammering the industry when the new facades being designed and built now are with non-combustible materials in agreement with developers, main contractors, and the specialist sub-contractor – meaning the risk is in fact reducing,” a cladding specialist head told
Construction Enquirer.
He said the quotes they get now range from £215,000 to £240,000, a huge rise from the less than £20,000 they normally paid for PI cover. Calling the increase “utterly ridiculous,” the source added that they are being told claims arising from combustibility of cladding materials are now expressly excluded.
Another firm lamented: “The indications are not good going forward as brokers and insurers alike are advising that PI will only become more expensive in the coming years, that’s if they will offer it to companies that are involved in our industry.
“Our premium was £14,000 before but the best offer we have to date is £42,000 for £10 million PI. We are looking to significantly reduce our excess and are being told we may end up being forced to pay closer to £100,000.”
According to the report, cladding contractors might end up invoking contract clauses that allow the insurance not to be offered amid unreasonable commercial rates.
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Grenfell Tower was “knowingly” supplied with flammable panels
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