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As we’ve seen, the amount of professional indemnity cover that contractors are required to have in place before bidding for projects continues to increase. But pressure has been mounting in both the UK and Ireland to prevent the situation becoming disproportionate. The concern is that the PII requirement is one of the reasons why SMEs in particular are failing to bid for, let alone win, public sector contracts.
As reported in electricalportal.co.uk, Martin Reid, Member Services Manager of the Scottish electro-technical trade body, SELECT, has questioned whether it is reasonable “to demand £5 million of professional indemnity insurance for a contract which is worth only £250,000.”
Meanwhile, in Ireland, there is a strong suggestion that the pressure may be having its effects. According to a report in irishtimes.com, many people believe that the Department of Finance has already instructed other Government departments to lower the threshold for smaller public sector contract bidders in the IT field, including a reduction in the professional indemnity insurance requirement. Call us at 01480 470220.
