Professional Indemnity insurance Scheme Renewal – 2021 - 22

for ‘legacy’ claims and a separate limit for ‘new’ claims). There is a recognition from the Scheme insurers that there will be scenarios which might arise which don’t readily lend themselves to an easy characterisation one way or the other. We will need to work through those scenarios as and when they arise in the years ahead and in doing so there will be a need to use all the pragmatism that we have consistently applied in the past. In a similar vein, there is no policy definition that sets out what ‘building work commenced’ means, to allow for some pragmatism for those few ‘close’ calls that will inevitably arise. As a guide only, we are suggesting that MHCLG’s guidance on this issue is persuasive, which indicates that the commencement of construction work is usually marked by these features: • excavation for strip or trench foundations or for pad footings, or the digging out and preparation of ground for raft foundations; • vibroflotation (stone columns) piling, boring for piles or pile driving; • drainage work specific to the building(s) concerned. Whereas the following would generally not be seen as marking the commencement of construction work: • removal of vegetation, or top soil, or the removal or treatment of contaminated soil • demolition of any previous buildings on the site; • excavation of trial holes, dynamic compaction, or general site servicing works (e.g. roadways) Where clients have more limited cover for FSN matters, or in some circumstances no cover at all, those positions will not alter as a result of the new ‘default’ position. Impact of the change As ever, the test for us in assessing any proposed change to our Scheme policy coverage is whether the approach being adopted by insurers is reasonable and proportionate. Our belief is that not only does this change continue to provide cover which is broader than that generally available in the current market, but also that it is of critical importance in our ability to preserve our 80+ year Scheme facilities for