A certain level of risk is inherent with all professional activities, but the implementation of a proactive Risk Management (RM) strategy can minimise both the frequency and severity of professional errors, and better protect the contractor against resultant contractual liability.
While this will undoubtedly make their risk more appealing to PI insurers, discounting the cost of risk transfer, the benefits are far more wide-ranging. Not only can the business see a reduction in the cost of risk which they retain (e.g. losses within the policy excess); they will also help to guard against the intangible cost of reputational damage which results from professional error.
As insurer appetite for construction Professional Indemnity insurance diminishes, how can Contractors secure a positive renewal outcome? Our latest construction whitepaper explains how a focussed approach to professional services risk management can assist in navigating the market.