Posted By russell calderwood Colleagues The following article from Contract Journal may interest you. It highlights the serious matter of obtaining adequate insurance cover (or not!!!), not only in respect of PL, but I also understand is affecting the availability of professional indemnity insurance (? at what price?) : -- I presume this has serious consequences, not only in respect of self-employed / consultants being appropriately insured? But also for workers / public in respect of their being able to obtain compensation arising from an accident? Besides the legal/criminal consequences if PL is not in place!! Do you think IOSH should have a view on this matter? And be lobbying on behalf of members, the public and/or industry? + please offer any other relevant comments? Russell Calderwood

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"Construction companies are being urged to renew their insurance policies as early as possible this week as the battle to secure adequate cover continues. A reduction in the number of insurance firms dealing in construction, many preferring to concentrate on lower risk sectors, has led to increases in employer's liability insurance premium of between 50-200%. Some firms are finding it difficult to secure cover at any price, while those insurance companies still dealing in construction are being more selective over taking on board the industry's risks. The growth in 'no win, no fee' type litigation has also resulted in increased payouts in certain areas, particularly employment and personal injury. The Construction Confederation (CC) learnt of the seriousness of the current problems at a conference organised by the Association of British Insurers and the British Insurance Brokers Association last week and is now looking at introducing a number of initiatives in an attempt to solve the crisis. It is contemplating the setting up a pooled or scheme arrangement for its members to access discounted premium cover, as well as a potential alliance with other construction industry trade bodies to generate greater savings. CC chief executive Stephen Ratcliffe said: "There are clearly no quick fixes but some useful ideas have been aired and these must now be moved forward as swiftly as possible. "We will be working closely with the insurance industry to help achieve a greater understanding of the risks being managed in construction. "There needs to be an appreciation, and rewarding of the many companies working hard to minimise risks and maintain good health and safety records," he said. "It may be that there should be benchmarking, possibly some form of third party accreditation, to help differentiate between high and low risk companies." The CC is also asking its member companies for evidence which it can pass onto the Department of Trade and Industry so it is fully aware of the effect the crisis is having on construction".

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