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Professional Indemnity Insurance For Builders

There are many concerns which builders need to address. Besides the "brick-and-mortar" aspects of this challenging trade, one of the very real topics which must be examined is the need for professional indemnity insurance. Why is PII so essential in this industry and what are a handful of the circumstances that it is specifically designed to cover?

Membership Within Reputable Organisations

One of the first concerns to address is the fact that professional indemnity insurance is considered compulsory to join such vaunted organisations as the National Federation of Builders (NFB) and the Chartered Association of Building Engineers (CABE). Not only are these groups able to provide an air of respectability in regards to the builder in question, but many clients are now only willing to work with accredited members. From a commercial point of view, these benefits cannot be denied.

Your Own Protection

Professional indemnity insurance will provide coverage in the event that a builder is subject to a claim filed by a third party. Why is this so very important in such a trade? The simple fact is that builders have a much higher liability in regards to a breach of contract, negligence or a similar error which can cause damage, personal injury, or both. Some examples can include:

•The faulty construction of a home.
•Poor roofing which results in severe water damage.
•Insufficient safety measures causing injury to an employee or a third party.

If a claim is filed against a builder, litigation expenses can be quite costly and occupy a great deal of time. Additionally, the financial compensation filed could very well cripple the operations of even the largest of builders. Professional indemnity insurance provides ample amounts of financial protection (likely into the millions of pounds). Therefore, owners can rest assured in the knowledge that they will be substantially insured in the unfortunate event that any claim is brought forth.

These are some of the very real concerns which professional indemnity insurance is meant to address. Besides enabling the company to appear more respectable to its clients, PII is an excellent means to guarantee safe and financially secure operations. As different types are intended to suit the discrete needs of the builder, it is always wise to shop around and compare both prices and benefts. You may wish to talk to an experienced PII consultant too, particularly if you have a high turnover or have been in business for some time.

Being a builder - what is the worst that can happen?

Construction work requires a great deal of careful planning and perfect execution in order for a project to be completed in time, on budget and to all of the required specifications. Unfortunately, for some projects there have been some hilarious building blunders that have made the history books. From reflective heat rays to toppling towers, we reveal some of the most famous building blunders in the world.

A Building that Shoots Heat Rays

Frank Gehry is an architect famous for his wonderful and wacky designs. One of his most famous buildings is the Walt Disney Concert Hall in Los Angeles which is created out of a serious of wavy metal and reflective surfaces. Unfortunately these surfaces acted as a sort of laser beam for the suns rays, causing a range of problems including heating neighboring condos up by 15 degrees and temporarily blinding nearby drivers. Luckily this problem was swiftly resolved thanks to builders sandblasting the areas that were most affected in order to reduce glare.

Heat rays being reflected from buildings is also a problem with many of the hotels in Las Vegas. The newly completed Vdara hotel had the same problem, when rays of sun light were being reflected into the swimming pool area and even burning some guests!

An Embarrassing Failure

The Tropicana Field is a sports arena that has gone down in history, albeit for all the wrong reasons. The structure features four cakewalks which dangle from the ceiling of the stadium. As the stadium is made primarily for baseball games it is important that the ceilings are kept free of obstacles - an obvious fact that was apparently disregarded by the construction team of the Tropicana Field. Now countless hits that should of been home runs have resulted in opponents happily catching the ball because it slowly rolled off of a cakewalk. That's of course if the ball does come down at all; there have been a number of occasions when the ball just gets stuck in one of the cakewalks and is not to be seen again.

That's not the only building blunder at this arena: on several occasions balls have struck the hot halogen lights that are in the roof, causing them to explode and rain down onto the field. Tropicana Field is also the only baseball facility out of the major league ballparks that does not have a retractable roof. A mistake in construction that certainly cost some architects their reputation.

World's Worst Windows

Hitting the headlines way back in the 70s was the Hancock Tower. The building certainly looked beautiful and even won a special National Honour Award from the American Institute of Architects. However, during any type of ill weather windows would dramatically crash from the building onto the pavements below. And no, these weren't just small window frames, they were enormous 500 pound slabs that were 5 foot by 12 foot in size! The Hancock was so notorious for its window losses that whenever the wind rose above 45 miles an hour police would corner off the area. During a big storm in 1973 over 60 windows came down in one day. That promoted builders to temporarily cover up many of the windows in affected areas using plywood, which made it look very unattractive indeed. In the end all of the windows had to be replaced at the costly sum of $7 million.

Rain Fail

The Lotus Riverside Complex in Shanghai was set to be an exclusive residential building. In 2009 construction on the 11 story building had nearly been completed and almost all of the flats had already been sold off. One morning when the construction team arrived they found that that block of flats had completely toppled over onto its side. The problem was down to several factors including issues with the foundations. The builders had created an underground parking area while also blocking up a close dam. They refused to listen to warnings about a blocked dam being so near to the property. One evening when heavy rainfall occurred the water caused the creek's banks to overflow and burst the dam which in turn flooded the building foundations and caused it to topple. Luckily no one was injured in this incident, plus the building narrowly missed other nearby buildings which could have resulted in a deadly domino effect.

ATM Madness

How is it even possible to install an ATM machine 7 feet above the ground? That's exactly what happened at the Melli Bank in Iran. In order to get cash out you will have to get a piggy back or even climb up a ladder!

Building Blunders From Around the Globe

The Internet is home to a host of images of funny construction mistakes that happen around the world. Many of these are ridiculously obvious. From doorways that lead to brick walls and security cameras that are installed right behind a sign, to a whole shed being built upside down, some of these massive blunders really do have to be seen to be believed!

These are just a few of the many major building miscalculations that have happened. In fact building errors still occur every day in small projects and massive mega construction schemes. Having solid plans, quality architects and a capable building team are only part of successful completion of a building project.

Prudent Plus Ltd is an introducer appointed representative of Seopa Ltd, of Blackstaff Studios, 8-10 Amelia Street, Belfast, BT2 7GS which is Authorised and Regulated by the Financial Conduct Authority number 313860. These facts can be checked by visiting the FCA website.

We do not give financial advice on this website. If in doubt get professional advice and always read the policy information before purchasing an insurance contract.