Marsh’s London office announced the launch of “a new project professional indemnity (PI) insurance facility for major construction projects. Designed for projects with an estimated construction value in excess of £25 million [$41.32 million], the facility can provide limits of liability of up to £20 million [$33 million] for periods of insurance of up to 10 years and is available globally, excluding projects located in the US.”
Marsh’s Financial and Professional Practice in London created the new facility, which can “cover all project participants with responsibility for professional services rendered in connection with the construction process. This includes contractors and consultants alike, whether working individually or in joint ventures or consortiums.”
Marsh said its construction PI insurance facility provides the following:
— Non-cancellable limits of liability that are dedicated to the project
— Certainty of coverage for the project with periods of insurance of up to 10 years, with the possibility of further periods being available after completion of the construction process in order to comply with contractual obligations
— Certainty of cost for the PI insurance
— Indemnity to owners where claims by third parties are made due to professional errors or omissions committed by the construction parties
— Wrap-up coverage for all construction parties engaged in the provision of professional services
The facility can also be used by project owners as an owner-controlled insurance program (OCIP), whereby the owner arranges the project PI insurance on behalf of the contractors and subcontractors, thereby ensuring total transparency of cost.
Martin Stubbs, a Senior Vice President in Marsh’s Financial and Professional Practice, explained: “Many project owners are now insisting that a construction project PI policy is in place, particularly for the larger, more prestigious projects, as they appreciate the benefits of certainty in these uncertain economic times.
“Marsh’s new construction PI facility provides the construction market with a consistent product, at a reasonable price, enabling project owners to manage and control their risks more effectively.”
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