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Combustible materials insurance market still feeling effects of Grenfell tragedy

It is estimated a staggering three million homes have been made effectively unsellable because of new regulations for cladding on buildings that were introduced following the Grenfell fire tragedy in 2017. This has significantly affected the professional indemnity insurance market and the majority of design and construct professional indemnity policies exclude liability revolving around the combustibility of cladding.

Simon Thew, managing director at W Denis Insurance Brokers, believes the market has significantly narrowed making the expert advice of a dedicated professional indemnity team even more important.

He explained: “The difficult professional indemnity market continues apace, after years of mounting claims and losses for insurer's capacity has been severely reduced particularly with respect to surveyors, engineers and design and construct professional indemnity. Those insurers who are left in the market have increased prices significantly and have narrowed the extent of the cover they are willing to provide. Most design and construct professional indemnity policy wordings already exclude liability relating to combustibility of cladding. In the UK, the introduction of EWS1 certificate requirements by RICS, with the Government rolling this out on a wider range of properties, has exacerbated the exposure that the professional indemnity insurance market has, and continues to have in relation to liability for combustible materials used within the construction industry.”

W Denis Insurance Brokers has a dedicated professional indemnity team that can offer specialist technical advice on construction professional indemnity, also known as design and construct professional indemnity, as well as professional indemnity for consulting engineers, surveyors and other professionals/consultants within the construction and property sector.

Daniel Moss, associate director, is the W Denis point of contact for new professional indemnity insurance quotations and can be contacted at and on 0113 2437243.

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