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.
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.