Professional indemnity insurance (PII) principally provides cover for liabilities arising from the negligent provision of professional advice or services. This article is intended as a discussion piece for professional consultants. Contractors responsible for the physical handling and/or removal of asbestos containing soils or materials, should consult their insurance brokers for advice.

For geoenvironmental and/or geotechnical consulting engineers, the presence of asbestos in soils or made ground is a risk consideration, especially in relation to the development of brownfield sites. It is therefore important for professional consultants to understand the extent of cover, if any, provided for asbestos-related claims under their PII policies.

The extent of cover provided for asbestos-related claims can vary considerably, and it is important for consultants to understand that no two PII policies are the same. Some policies may exclude cover for all asbestos related claims, and those policies that do provide cover will typically be subject to specific asbestos-related restrictions, limitations and/or exclusions, such as:

• aggregate, costs inclusive, limits of indemnity;
• cover limited to claims arising directly from negligence;
• cover restricted to work undertaken in the UK, Isle of Man, Channel Islands and Republic of Ireland; and
• bodily injury, illness and death exclusion.

Consultants should also check for specific exclusions relating to Environmental Audits and Asbestos Inspections, and whether such exclusions might apply to ground investigations.

It is worth noting that PII policies typically treat asbestos related claims separately from pollution and/or contamination claims, and the two areas of risk and cover should not be confused.

Understanding insurance policies and insurance terminology can be difficult and confusing, and consultants should therefore seek advice from their insurance brokers. It might also be helpful for consultants to specifically ask if and to what extent their PII policy might respond to claims arising under specific scenarios, such as the following.

1. An omission to test for asbestos in soils or made ground.
2. A ground investigation failing to identify the presence or extent of asbestos in the ground.
3. A remediation scheme designed by professional fails to clear or make safe contaminated areas.
4. A ground investigation, designed and directed by a professional consultant, disturbing asbestos materials.

It is of course important for consultants to secure the most suitable cover for their risk exposures, and where possible to transfer the risk to insurers. However, consultants should also consider risk management measures, including the use of formal terms of engagement, having a clearly defined scope of works, maintaining accurate written records, and the use of disclaimers, limitations and qualifications in reports.

If you have any questions about the contents of this article, please contact the author, Paul Livesey at Griffiths & Armour (plivesey@griffithsandarmour.com).

Whilst care has been taken in the production of this article and the information contained within it has been obtained from sources that Griffiths & Armour believes to be reliable, Griffiths & Armour does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the article or any part of it and can accept no liability for any loss incurred in any way whatsoever by any person who may rely on it. In any case any recipient shall be entirely responsible for the use to which it puts this article.