Liability and Insurance in the Kenyan Construction Industry: an Evaluation of the Use and Performance of Professional Indemnity Insurance Policies.

Abstract

The use of professional indemnity insurance policies is one of the ways that a professional may opt for to limit the financial consequences of an action being brought against him for professional negligence. This research aims to find out the extent to which professionals in the construction industry use professional indemnity insurance and how effective it has been in limiting the financial effects of professional negligence for professionals. Professional indemnity insurance policies are a useful way of settling claims for professional negligence. Many professional firms working in the construction industry possess these policies, but there are relatively few cases of claims for professional negligence which have settled using the policies. There is a need for greater awareness on the concept and application of professional indemnity insurance, greater emphasis and encouragement of its use and for more interaction between insurance companies and professionals working in the construction industry so as to determine the features of professional indemnity policies that are best suited to the construction industry.