Marsh issues new professional indemnity insurance facility

Risk adviser and insurance broker Marsh recently announced its launch of a new facility aimed at providing PI insurance for major projects in the construction industry.

The new business liability insurance was designed for construction projects valued at £25 million or higher; Marsh’s new facility has the ability to provide liability limits over terms up to a decade, offers up to £20 million in protection, and has global availability for all construction projects worldwide, with the exception of US projects.

Marsh’s London office, specifically its Financial and Professional Practice, is responsible for the creation of the new professional liability insurance.  The facility has the ability to offer coverage to any entities working in a professional service capacity on a construction project, including consultants, contractors and sub-contractors, regardless of whether they are working in an individual capacity or if they entered into a consortium or a joint venture.

The new construction project professional indemnity insurance Marsh’s new facility provides such benefits as certainty of cost; certainty of project coverage for up to ten years at a time, with the option to renew for further time periods if needed after the construction project is complete if obligated by contract; a liability limit that has a non-cancellation clause; owner indemnity in regards to third party claims on the grounds of omissions or errors whilst undergoing construction; and coverage for all parties involved in the delivery of professional services.

The new facility can additionally be utilised by project managers and owners as  an owner-controlled insurance programme, a sheme in which, on behalf of the project’s contractors and sub-contractors, the project owner arranges for the insurance coverage – an important step in encouraging total cost transparency.

Marsh’s Financial and Professional Practice Senior Vice President Martin Stubbs said in a statement regarding the new facility that a great number of project owners have become insistent that some sort of PI insurance has gone into effect before beginning construction, especially for the bigger, more expensive projects, because those owners are appreciative of the security provided by such a policy in these rough economic waters.

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