RAAC - PII implications

The market could move towards aggregating claims relating to RAAC, so that a

single aggregate limit would apply to all such claims, or they could exclude claims

relating to RAAC altogether for those with significant exposures.

We see no sign of either approach being suggested in the market and for the

moment at least it’s hard to see why it would be necessary for any PI insurer to

adopt a restrictive approach to covering such claims. We will continue to monitor the

situation carefully and report accordingly.

Conclusion and key takeaway

Watch out for the contract terms that you agree when undertaking any survey related

work in this sphere and, in particular, for any certification you are required to supply.

The ‘legacy’ issues here are not likely to be the main claims driver. That will be

whether – and how – professionals and contractors undertake the work to survey

and remediate buildings.

If that is done properly, with reasonable contracts and on a fair risk v. reward basis,

then industry will be able to safely help solve a problem not of their own making. If

onerous contracts and unqualified certificates amounting to guarantees become the

norm, then we risk a potential repeat of some of the problems of the ongoing fire

safety crisis which will help no-one.

We hope this brief overview of a fast-developing area is helpful and please do

contact your usual G&A contact should you wish to discuss any aspect of this

guidance further.