Contractors are being warned to expect big hikes in insurance premiums in the wake of the Grenfell fire and additional scrutiny following publication of the forthcoming Hackitt review.

The boss of one tier-one contractor told Building his firm is facing a large increase in its professional indemnity (PI) premium as insurers become increasingly worried about the risks associated with contracting “and anything to do with cladding”.

And while a majority of firms surveyed earlier this year by Build UK and the Construction Industry Council (CIC) said they had not yet seen their PI premiums rise, 10% had been hit with increases in excess of 50% or had been refused cover altogether.

CIC chief executive Graham Watts said companies are likely to face a grilling from insurance firms when their policies come in for renewal in the coming months.

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