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There are good reasons to consider Single Project Professional Liability insurance from AIG

What is Single Project Professional Indemnity (SPPI)?

This is a type of Professional Liability insurance that is arranged around the lifecycle and needs of a specific construction project. Unlike conventional annually renewable policies it has particular advantages for project owners and for Joint Venture operators.

Transparency in cost

With an SPPI the cost of the cover for the entire project is known up front and avoids the possibility of owners incurring additional costs from contractors for premiums relating to their own cover for the project.


Provides owners with certainty of cover for up to 10 years after completion of the project. With annually renewable policies there is no guarantee that individual contractors will renew their individual policies after completion.

Capped Limits

The SPPI is structured around the requirements of the project and so avoids the danger of contractors’ capping their own liabilities at a level that’s not high enough to be appropriate.


Project owners have more control over the scope of cover, limits and policy duration of an SPPI than they do over their contractors’ individual PI policies. This means that the project will have the right protection, tailored against the true risks.

Certainty of cover

Provides owners with certainty of cover throughout the project. Annually renewable policies on the other hand could fall into default or have limits eroded by other claims that have nothing to do with this project. Once issued, the policy cannot be cancelled by the insurer.

Minimising disputes

The SPPI policy protects owners against delays resulting from contractors and subcontractors disputing who is at fault for an error and defending their own individual position.

Consistent Coverage

A SPPI ensures that owners have consistent cover in place for all contractors and consultants involved in the project, minimising the management time and negotiation required.

Who is it for?

We can structure SPPIs around a wide range of projects encompassing nearly all professional businesses operating in this area. Our preferred projects will have a construction value over €10 million.

What is covered?

Covers all professional service providers involved in contract: architects, engineers, designers, construction supervision, qualified surveys and feasibility studies

Cover includes contractors and consultants associated with the project whether working individually, as a joint venture or as a consortium

Covers professional negligence claims against all parties throughout the life span of a contract and beyond: design, to construction to completion and up to 10 years discovery.

Like annually renewable Professionals Indemnity cover is on a claims made basis and once issued cover limits are non-cancellable

Some case studies in how Single Project Professional Indemnity can assist projects.

The insured were responsible for the design of the trains and received a claim from the project owner for defective designed rail cars. The design was shown to have been inadequate and permitted water intrusion into the rail car shell with resulting damage to the rail car interior components.

The claim related to the rectification of 74 rail cars and the SPPI policy paid almost USD 10 million in repair costs

Following the Design and Construction of timeshare vacation units, mould infiltration was discovered in some of the units shortly after they opened. This happened during the rainy season, specifically after a hurricane. The units developed internal mould formation as well as moisture ingress through exterior walls. The units developed an odour and as a result the walls needed to be replaced at a cost of over $17million. It was established that the design and specification used for the units were different to those usually used in this particular location.

The SPPI policy provided coverage for all of the consultants and sub consultants for their roles in the design and construction of the project.

A claim in excess of $75million arose when design services relating to remedial works to a road bearing viaduct across a river were incorrect. Specifically it was the design, supply and installation of the bridge roller bearings. The roller bearings which were inherent in the design as part of the bridges expansion and contraction had cracked. Subsequent investigations showed that design calculations were incorrect, feeding insufficient tolerance levels.

The clients SPPI policy covered the remedial works including the replacement of the bearings with an alternative system, as well as the traffic management costs.

Two tunnels underneath a waterway were designed and constructed for motorised traffic use. Problems with the design of the concrete tunnel lining elements caused too high stress levels which in turn had an adverse bearing on the joint seal between the elements.

Many of the elements were replaced and the construction delays and the re-design costs sought were nearly $10 million, all of which were covered by their SPPI policy.