Single Project PI & Liability
We provide long term non-cancellable Project Professional Indemnity insurance for the legal liabilities arising out of errors or omissions in their Professional Duties for Contractors, Engineers, Surveyors, Consultants and other related professions employed on construction projects.
The period of insurance can take into account pre-feasibility including early design work prior to the start of construction, the construction period as well as the maintenance and discovery period following final completion of the contract (up to 72 months).
Cover combinations can include Professional Indemnity, Public Liability and First Party Rectification costs and generally covers all of the professionals involved in the single project.
Business originating in other African territories is written outside South Africa via our group partners at SAHAM.
Cover options
These insurance programs are carefully crafted for each project. Cover options are generally:
Professional indemnity
PI Cover for all the professionals on the specific project for the duration of the contract from pre-feasibility stage all the way to completion of the project (up to 72 months).
Prior to handover
Cover includes first party rectification/mitigation coverage prior to handover in respect of losses arising out of professional services.
Legal liability
Legal liability for third party injury or damage to property arising out of construction activities. Policy can also be extended to cover employers liability and motor excess of loss.
Benefits of Single Project Cover
Aside from being able to insure all the professionals involved in a project under one policy, there are a number of other key features that set the single project policy apart from other PI covers:
No contractual limitation of liability exclusion
Policy will pay up to full limit regardless of limitations of liability imposed (other than consequential losses).
Non-accidental operative clause
Single project liability section is written with a broadform policy trigger.
Failure to supervise
Cover for losses arising out of the insured’s failure to supervise.
Worldwide jurisdiction
Excluding North America.
Non-cancellable
Multi year policy period that is non-cancellable.
Capacity and period of insurance
- USD $50,000,000 available capacity on selected risks
- 72 months (up to 6 years) policy period
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ClaimsWhy insure with SHA?
Solutions
Unique, bespoke solutions carefully crafted for complex risks and projects
Longevity
Project and construction PI claims can take many years to be discovered and then even longer to be resolved. SHA has over 35 years of experience in handling long tail, complex claims effectively.
Strength
Claims in this sector can be volatile and substantial. SHA as a division of Santam Ltd, being the largest short term insurer, is adequately supported manage these exposures.Single Project FAQ's
What key information is required to get a quote?
SHA only transacts business via licensed insurance brokers. A proposal form is required and can be downloaded here on our website. See the downloads block on this page plus we also need:
- a description of the contract
- details of all contractors and professionals involved
- Any additional information that helps paint a clear picture of the risk should also be submitted such as brochures, surveys etc.
How many deductibles will a client have to pay?
This is dependent upon the number of incidents, one per occurrence is applicable. If the Insured party has deductible infill cover in terms of their annual this will reduce the deductible applicable to the Single Project Policy
What happens to the Policy if someone else goes insolvent?
The policy will remain in force and the first named insured has the option of contracting someone in to undertake the work.
What happens if the liability between the parties has been limited to twice fees?
The benefit of the Single Project policy is that it has a no contractual limitation of liability clause within the policy and therefore overlooks the limitation and will compensate to the full limit of the policy
What happens if other claims have eroded the limit of indemnity?
It is very important that the consultant declares the project in terms of his annual policy so that should the Single Project PI policy’s limit be eroded the funds could then come from the annual policy
What happens if all the professionals get sued for the same mistake?
Each consultant will be investigated to establish who in fact was or was not responsible for the error.
How can I be sure that the Insurer isn’t using the inside information I provide to them to benefit other parties?
An attorney and project team will be selected and will act independently from each other. SHA prides itself in acting confidentially for each party.
Who will my broker be acting for?
This is probably the most complicated matter within this area as the Broker placing the risk generally acts on behalf of the Employer who has effected the cover on behalf of all the professionals, who in most of the matters relating to Single Projects would be the 3rd Party. We would suggest that the consultant, with their annual broker work together with SHA.
What if I didn’t make a mistake and I get held liable?
The limit of indemnity in terms of the policy will provide funds for the defence costs against the 3rd party for these allegations of negligence against the consultant.
What happens if the professional refuses to claim on the Policy?
The 3rd Party will need to institute legal action against the professional as the policy cannot operate without the professional triggering the policy.
What if one of the other Insured’s breach their Policy conditions?
The professional who has breached the policy conditions will not receive any benefit from the policy proceeds. This will however not affect any of the other professionals who have not been part of this breach.
