Euna broadens Building and Engineering Contractors PI cover as regulatory pressure on the sector intensifies

Specialist MGA Euna Underwriting has strengthened its Building and Engineering Contractors Professional Indemnity product with fourteen policy extensions, responding to a liability environment that has shifted materially since key provisions of the Building Safety Act 2022 and associated regulations have taken effect.

The Act’s extension of limitation periods under the Defective Premises Act 1972 — to 30 years retrospectively for certain historic claims and 15 years prospectively for new claims — has extended the potential liability tail for contractors, designers and construction professionals. Recent case law (URS Corporation Ltd v BDW Trading Ltd [2025] UKSC 21) has also reinforced the need for careful scrutiny of construction-related professional negligence exposures, particularly where multiple parties, historic works and remediation costs are involved.

Euna’s decision to act comes against the backdrop of a softening PI market, where some market wordings remain closer to traditional consultants’ PI forms. Euna’s approach has been to build its enhancements around the practical exposures faced by building and engineering contractors, drawing on direct broker feedback and the firm’s underwriting experience across the sector.

The enhancements address risk areas that have grown in prominence as liability in the sector has evolved. These include collateral warranties and duty of care agreements, subcontracted design exposure, regulatory and disciplinary proceedings, and Building Information Modelling-related liabilities — an area of increasing significance as digital project records take on greater legal and evidential importance. The updated wording also extends cover in areas including rectification and mitigation costs, intellectual property infringement, and loss of documents/data connected with professional services.

Pete Newson, Head of Professional Indemnity Underwriting at Euna, said:

“Our PI proposition is built around giving brokers direct access to experienced underwriters who understand the risks they are placing. That matters most when the coverage questions are complex, and in construction PI right now, they often are.

“Some of the wording activity we’ve seen in the market has involved adapting traditional consultants’ PI wordings for construction clients. That’s not the same thing. Our enhancements have been developed specifically against what a building and engineering contractor needs, and they reflect the way liability falls on these projects. Fourteen extensions is a significant commitment, and every one of them has a reason behind it.”

The updated wording sits within Euna’s broader PI proposition, which offers limits of up to £20 million, A-rated capacity, and primary and excess layer capability across a wide range of UK professional sectors. Quotations are typically provided within 24 hours where full underwriting information is available.

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