The PI market locally remains highly competitive however insurers have become increasingly selective with regards to risk appetite. Despite being in a “soft cycle” for several years, the Insurance industry has now entered a much harder market both locally and globally. This hardening of the market relates to risk appetite, reduced rates, reduction in investment income, the high costs of claim resulting in stricter underwriting controls, increased premiums and some insurers pulling out of the Professional Indemnity space entirely. International liability markets have also hardened with significant claims from natural global catastrophes such as floods and earthquakes. Locally there has been a significant increase in frequency and severity of PI claims and it is extremely important to ensure that member firms have the necessary insurances in place. With this in mind, CESA and Aon have a longstanding relationship and have designed a Professional Indemnity product to fit the needs of our member firms.
The Aon CESA Professional Indemnity product includes various extensions such as incentivising firms for adhering to a QMS which qualifies for a 25% discount on the deductible payable on a claim. Firms that limit their liability in terms of a professional services agreement qualified for a 50% discount in the deductible payable on a claim. Where a firm finds itself qualifying for both on a particular claim, a 75% reduction in the deductible payable becomes applicable and firms have definitely seen the benefit in these incentives. There are also automatic extensions (to name few) such as :
- Joint Venture / Consortium Agreements
- Defects in Contract Works
- Mitigation of Loss Costs
- Contractors / Specialist Contractors
- Court Attendance Costs
- Innocent non-disclosure
- Health & Safety Agents
- Products Liability
We are also able to identify claims trends and have access to an exclusive Aon offering which provides Legal Risk Management Services. The LRMS team comprise of two admitted attorneys who are able to review and advise on matters such as :
- Letters of Appointment
- Joint Venture agreements
- Sub-consultancy agreements
- Duty of care undertakings to client’s financiers
- Collateral warranties
- Appointment of Consultants as OHS Agents
- Completion Certificate Queries
- Presentations regarding risk management and awareness
CESA members qualify for an exclusive CESA discount on their premiums which has been negotiated with Aon and their Insurers. Aon are actively involved in CESA committees ensuring that member firms have the benefit of an Insurance Broker who understands and is actively involved in the built environment industry.