If you have been keeping a close eye on the construction insurance market this week, you likely saw the news from Euna Underwriting. On 22 July 2026, they officially released 14 new extensions to their Professional Indemnity (PI) product for building and engineering contractors.
As someone who spends a lot of time reviewing policy wordings and talking to firms across Essex and London, I can tell you this isn't just another routine update. This is a direct response to the massive liability shift we have seen since the Building Safety Act and its subsequent regulations really took hold. The landscape for Construction Contractor Insurance has changed, and if your policy is still using a standard wording from three or four years ago, you are likely carrying risks you don't even realise.
In fact, I often see contractors assuming their combined commercial insurance covers everything, only to find a massive gap when it comes to design responsibility or regulatory fallout. These new extensions from Euna are designed to plug those gaps.
The Building Safety Act: Why the Goalposts Moved
The primary reason we are seeing these 14 new extensions is the "long tail" of liability created by the Building Safety Act. For years, the standard limitation period for defect claims was six or twelve years. Now, we are looking at a 30-year retrospective period for certain claims and a 15-year prospective period for new work.
When the liability period doubles or triples, the insurance market has to evolve. I’ve spoken to several developers in Kent who are suddenly being asked for proof of cover on projects they finished a decade ago. It is a pragmatic reality: the risk is staying on your books for much longer. Euna’s update addresses this by broadening how the policy responds to these extended liability tails and the heightened oversight from regulators.
Breaking Down the Key Extensions
While "14 extensions" sounds like a lot of technical jargon, they essentially boil down to a few critical areas that every general contractor should understand.
1. Regulatory and Disciplinary Proceedings
In 2026, the Building Safety Regulator is more active than ever. If you are working on higher-risk buildings (HRBs) in London, you are under a microscope. Euna’s new wording includes specific cover for costs related to regulatory investigations. This is no longer a "nice-to-have" extension; it is essential. If a regulator calls you in for a formal interview regarding a safety compliance issue, the legal costs alone can be staggering.
2. Building Information Modelling (BIM) Risks
We have moved far beyond BIM being just a "fancy 3D model." Today, the BIM model is a legal record. If there is a clash detection error that isn't spotted because of a digital data failure, who is at fault? Euna has explicitly introduced BIM-related liability cover. This addresses risks around data integrity, version control, and the shared reliance on digital models. For contractors in the London market where BIM Level 2 or 3 is the standard, this is a vital piece of the puzzle.
3. Subcontracted Design Exposure
I see this mistake all the time: a contractor thinks they don't need PI insurance because "the architect does the design." But as a general contractor, you often have a contractual duty of care that makes you liable for the failure of your sub-consultants. These new extensions ensure that if a subcontracted designer makes an error, your PI policy is positioned to respond effectively.
4. Rectification and Mitigation Costs
One of the most practical additions is the improved cover for rectification costs. This allows you to claim for reasonable expenses incurred to fix an error before it turns into a massive claim. In the past, some policies wouldn't pay out until a formal claim was made against you. Waiting for a claim to crystallise is often the most expensive way to handle a defect. Being able to mitigate early saves everyone money and preserves your reputation.
Why This Matters for Business Insurance in Essex and London
Whether you are a growing business in Essex or an established firm handling major projects in London, your General Contractor Liability Insurance needs to reflect the modern reality of the UK construction sector.
The PI market has been "hard" for a few years now: meaning higher premiums and stricter terms. However, seeing an insurer like Euna provide these specific extensions is a sign that the market is becoming more sophisticated in how it handles risk. Instead of just raising prices, they are providing better tools.
If you are a contractor working on higher-risk buildings, your insurance requirements are naturally more complex. You aren't just looking for a cheap quote; you are looking for a policy that won't leave you hanging when a BIM data dispute arises three years from now. This is where the independent broker vs online comparison debate becomes very real. An online form isn't going to ask you about your BIM Execution Plan (BEP) or your 15-year prospective liability tail.
Practical Steps to Align Your Policy
If you are reading this and wondering if your current cover is up to scratch, here are a few steps I recommend:
- Review Your "Professional Services" Definition: Does your policy actually cover the coordination and management of digital data? Many older policies don't.
- Check the Retroactive Date: With the Building Safety Act changes, your retroactive date is more important than ever. Ensure there are no gaps between when you started work and when your cover began.
- Disclose Your BIM Usage: Be transparent with your broker about how you use BIM. If you are taking on the "Information Manager" role, that needs to be noted.
- Audit Your Sub-consultants: Ensure they have their own PI insurance with limits that match your own obligations to the client.
The Moyak Approach: Personalised Care
At Moyak Insurance Services, we take an individual approach to every client. We aren't just here to sell you a policy; we are here to act as your business insurance broker in Essex, Kent, and London. We deal with the UK's leading master insurance brokers to ensure you get the best cover for your budget.
I think the biggest value we provide is our ability to translate these complex insurance updates: like Euna's 14 extensions: into what they actually mean for your day-to-day operations. Whether you're worried about cleaning business insurance or high-level professional indemnity for a multi-million-pound build, we make sure you're protected.
Going forward, the construction industry will only get more regulated. Having a partner who understands the difference between a standard policy and one with these critical extensions can save you a fortune: not just in premiums, but in the long-term survival of your business.
Frequently Asked Questions
What is Professional Indemnity (PI) insurance for contractors?
It covers legal costs and expenses incurred in your defence, as well as any damages or costs that may be awarded, if you are alleged to have provided inadequate advice, services, or designs that caused your client a financial loss.
Do I need BIM-specific insurance?
In 2026, you don't necessarily need a separate "BIM policy," but you do need your PI and General Liability policies to be extended to cover digital data, BIM-related activities, and the liabilities arising from shared digital models.
How has the Building Safety Act changed insurance?
It has significantly extended the period during which you can be held liable for defects (up to 30 years for some historic projects). This means your insurance needs to provide much longer "tail" coverage and account for more rigorous regulatory oversight.
What is a "liability tail"?
The liability tail refers to the period after a project is completed during which a claim can still be made. For contractors, this tail has grown much longer due to recent legislative changes in the UK.
Why should I use a broker in Essex or London instead of a national firm?
Local brokers like Moyak Insurance Services understand the specific regional risks and have established relationships with London-market underwriters. This allows for a more personalised approach and often better access to specialized products like Euna's PI extensions.