Review of Professional Indemnity Insurance
Following a number of recent occurrences of inappropriate requirements for PII in public sectors tenders, CEF along with Trevor McClintock of our Patrons, Willis Towers Watson, this week met with Des Armstrong CEO of CPD to discuss.
CPD have agreed to review the pertinent Guidance Note PGN 03/12 which has not been materially changed since created in 2012. As well as reviewing the cover amounts, specifically we have asked CPD:
To ensure level of cover sought does not exceed the guidance levels (below) which are more than sufficient; and
To consider additional clarification regarding Frameworks, where, although the total contract value may be substantial, the value of individual ‘projects’ are of relatively low.
As a reminder, the current guidance is:
|Project Value||Required Cover|
|Up to £2m||£1m|
|£2m to £10m||50% of project value*|
|£10m to £25m||£5m|
|£25m to £50m||20% of project value*|
*These should be expressed as sums of money in the contract.
We are advising members to raise clarifications where they see excessive PII requirements and to advise CEF so we can collate these and input to CPD’s review of the guidance.
Willis Towers Watson have provided the attached update on PII.
Trevor is contactable at: direct: 02890 895094, trevor.mcclintock@WillisTowersWatson.com