Why professional indemnity insurance matters more than ever
In recent years, we’ve seen a noticeable increase in conversations around Professional Indemnity (PI) insurance across the scaffolding and access sector. More clients are asking for it, more contracts are demanding it and more members are starting to recognise the level of exposure that can exist within modern scaffolding operations.
At NASC Insurance Services, we speak with members every week who understandably assume their existing liability policies will respond to all claims arising from their work. That’s not always the case.
Professional Indemnity insurance is designed to protect businesses against claims arising from professional services, advice, design work or technical input. For many scaffolding contractors, that exposure now forms part of day-to-day operations, whether recognised or not.
The industry has changed
Scaffolding businesses today do far more than simply erect and dismantle structures. Members are increasingly involved in temporary works coordination, bespoke scaffold design, compliance input, sequencing advice and site-specific adaptations to standard configurations.
Even when working within recognised guidance such as NASC’s TG20, decisions around loadings, tie patterns, site restrictions and scaffold alterations can carry professional responsibility.
Under the Construction (Design and Management) Regulations, these responsibilities can create a clear duty of care. Where there is an allegation that advice, design input, or coordination has fallen short, businesses can quickly find themselves facing significant claims.
Importantly, these claims do not always involve injury or property damage.
The risk of financial loss
One of the biggest misunderstandings around insurance is the difference between Public Liability and Professional Indemnity cover.
Public Liability insurance generally responds to injury or physical damage claims. But PI is designed to deal with claims for financial loss arising from professional services.
For example, a scaffold design issue may lead to project delays, additional hire charges, remedial works, or operational disruption on site. Even where nobody has been injured and no property has been damaged, the financial consequences can still be substantial.
We are also seeing increasing pressure through contract terms. Main contractors and developers are frequently seeking to pass greater responsibility onto subcontractors through design obligations, fitness-for-purpose clauses, and collateral warranties.
Without appropriate PI cover in place, these exposures can leave businesses vulnerable.
Legal costs alone can be significant
Another important factor is the cost of defending allegations, even where a claim has little merit.
PI insurance can help cover legal defence costs, expert reports, technical investigations and associated expenses. In many cases, having access to specialist support early can make a major difference in resolving issues before they escalate further.
For scaffolding contractors operating in a highly regulated and increasingly contractual environment, that protection can be invaluable.
Supporting NASC members
At NASC Insurance Services, we understand the scaffolding sector because it is the only industry we focus on. We know the contractual pressures members face, the technical nature of the work being undertaken and the expectations placed upon businesses operating within the NASC community.
Our role is not simply to arrange insurance policies. We work with members to help them understand where exposures may exist, what clients are asking for and how cover can be structured appropriately for their operations.
This includes support around PI insurance, contractual liability considerations and collateral warranty reviews, where available through insurers.
Every business is different. Some members may have limited exposure, while others may be undertaking significant design responsibility as part of their services. The important thing is making informed decisions based on a clear understanding of the risks involved.
Protecting your reputation
NASC members are recognised throughout the industry for high standards, competence, and professionalism. PI insurance is increasingly becoming an important part of demonstrating that commitment to clients, principal contractors and project stakeholders. More importantly, it helps protect the long-term stability and reputation of your business should something go wrong.
As the industry continues to evolve, ensuring your insurance arrangements keep pace with your operational responsibilities has never been more important. For members who would like guidance on PI insurance or wider risk management support, myself and the team at NASC Insurance Services are here to help.
