'Virtually impossible' for engineers to get insured for fire safety, industry warns

Since the Grenfell Tower tragedy in 2017, insurers have become more reluctant to cover for potential fire safety issues in Ireland.

Construction projects, including large housing developments, are facing major delays because architects and engineers are finding it increasingly difficult to get professional indemnity insurance. 

In particular, the reluctance of the major UK insurance firms to offer cover to engineers involved in fire safety design and construction threatens the immediate future of some projects, according to a number of industry sources.

The issue is arising out of a similar problem in the UK, which was brought to a head by the Grenfell Tower fire tragedy in London in 2017, in which 72 people died. 

Subsequent inquiries into the use of building materials unearthed some major problems in the UK, exposing potential liabilities for insurance firms. 

A fire safety inquiry in this country following the tragedy concluded that the fire safety problems in the UK were not an issue here.

However, the bulk of insurance firms covering professional indemnity are not treating Ireland as a separate case.

One insurance firm has recently formed a Dublin-based chartered fire engineer that it is “no longer able to provide professional indemnity insurance for fire engineers working in [Ireland].” 

The eventual policy this engineer received, seen by the Irish Examiner, included a “fire safety exclusion” clause, meaning the engineer is not covered for any issues that arise in relation to fire safety and, consequently, is unable to sign off on work requiring a fire safety certificate. 

If this is replicated with other fire engineers when their policies come up for renewal, all construction requiring a fire safety certificate would be immediately delayed.

Martin Adams of Arachas Insurance brokers in Cork said that he is increasingly concerned about the situation, particularly in relation to fire safety experts.

“We can still get a quote for engineers,” he said. 

“But it is virtually impossible to get cover for fire safety. We have five or six clients due for renewal in May and the insurance companies are applying fire safety exclusions to the policy which basically excludes all the work they are carrying out. At this rate, nothing is going to get built.” 

Damien Owens, registrar with the Institute of Engineers in Ireland, said the long-standing problems in professional indemnity have been exacerbated by Brexit and Grenfell Tower, and there are growing problems for smaller engineering firms in particular.

“The whole area of PI insurance is complex,” he says. 

“We really need to have a model is in place that ensures that smaller practitioners are not being passed out.” 

Mr Owens confirmed that representations have been made to Government in recent weeks on the issue from various umbrella bodies in the industry.