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Limitation periods: the time in which claims can be brought against designers and builders has risen from six years to: ● 15 years for claims regarding works completed after 28 June 2022; and ● 30 years for claims regarding works completed before 28 June 2022. My observation: Given the passage of time – particularly with the retrospective limitation period – it will be interesting to see how a fair trial can be ensured. Manufacturers : Direct claims can be brought against manufacturers and suppliers by a person with relevant interest (for example, the homeowner), where previously this had not been possible without a direct contractual relationship between the two parties. My observation: Will this direct pathway for action between homeowner With legal changes in place from the Building Safety Act, members need to be adequately protected, writes FMB Insurance Director, Emma Whyatt UNDER COVER
I t has always been important to protect your business with adequate insurance cover, but it is even more urgent now due to the Building Safety Act (BSA). Start by having these two types of cover in place: ● Professional indemnity insurance – protection against claims for loss or damage made by clients or third parties as a result of the impact of negligent services or advice you provided. This is important if design work is part of your service, or if you make changes to any aspect of designs provided to you by a
and manufacturer reduce the burden on the contractor who may previously have found themselves held responsible?
What members should do ● Review areas of risk mitigation.
● Keep consistent records as claims can be lodged up to 15 years after project completion, and hold onto evidence as it will be possible to pursue a manufacturer or supplier, which might be even more important in cases where other parties have gone out of business. ● Review old claims and contracts as longer limitation periods could affect projects that have already taken place. ● Take out cover, including public and products liability, professional indemnity (PI) insurances for you and your subcontractors (keep PI for up to 15 years after completion of the job to match the limitation period), and D&O insurance to protect senior staff carrying our responsibilities under BSA. ● Stay up to date with BSA information as plenty of unknowns remain. Please note: this article does not constitute legal advice. If uncertain about how the BSA affects you, please seek independent legal advice. For more information on complying with the Act, see page 19.
third party such as an architect. ● Directors and officers’ (D&O)
insurance – flexible cover for senior staff members, including current, future and past executive and non-executive officers, managerial and supervisory employees, and non-executive directors of a company and its subsidiaries. Protection is typically for misleading statements, financial reporting errors, negligence, non-compliance with regulations or laws, breach of duty or breach of trust. BSA’s effects on insurance Here’s how the Act could affect your insurance requirements. Roles and responsibilities: designers, builders and clients have new duties and obligations throughout the lifecycle of the building. Of particular importance are: ● Principal designer – “all reasonable steps to ensure” compliance with building regulations; and ● Principal contractor – “to ensure” the building complies with building regulations. My observation: Does this mean legal action could be more likely to succeed against contractors than designers?
FMB Insurance can provide you with the policies you need. Call us on 01353 652 760 or send an email to insurance@fmb.org.uk.
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Master Builder
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