The Association of Consulting Engineers (ACE) has warned that the costs of professional indemnity insurance are spiralling by up to 300%.
The ACE is calling on the government to promote a bill to change the law on joint and several liability in the construction industry. It predicts a meltdown in the professional indemnity insurance market if the government does not act immediately.
ACE chief executive Nelson Ogunshakin said: "UK engineering consultancies are facing intolerable business pressures, brought on by professional indemnity insurance premiums, which in some cases are equivalent to up to 6% of their annual turnover. We need to remove the existing discriminatory system of joint and several liability and replace it with proportionate liability, together with sensible insurance premiums and excesses."
Source
Building Sustainable Design
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