Advice to Construction Clients

The Financial Regulator in Ireland has issued the following statement, with regard to Quinn.

“Statement 30 March 2010

Following an application by the Financial Regulator, the High Court has today appointed joint provisional administrators to Quinn Insurance Limited. The Financial Regulator has taken this action in the interests of the firm’s policyholders.
 
Quinn Insurance Limited

Irish policyholders of Quinn Insurance Limited can continue to renew policies, carry out new business and make claims in the normal way.

The appointment of joint provisional administrators will better protect policyholders. It will allow the firm to remain open for business, to continue to be run as a going concern under different management and to put the business on a sound commercial and financial footing.

The Financial Regulator has an onsite presence in the firm to oversee its actions and to work with the new management. At the same time the Financial Regulator has commenced an investigation into certain matters within Quinn Insurance Limited that have very recently come to light.

Quinn Insurance Limited (UK)

In addition, the Financial Regulator has separately directed Quinn Insurance Limited to cease writing new business in the UK. Existing UK policyholders will not be affected by this decision as existing policies will remain valid. Customers can make claims in the normal way.

The effect of this action is to prevent Quinn Insurance Limited suffering further financial losses from its currently unprofitable UK business.

Quinn Life

These actions do not apply to the Quinn Life business, which is a separate entity. It is unaffected by these measures. “

Summary

Whilst UK policyholders cover remains valid, the current position is that Quinn are no longer offering New business or Renewals in the UK (Including Northern Ireland).

See Administrators Statement issued 2nd April 2010.

What does this mean for me?

“I am a Contractor, with sub-contractors who obtain Insurance from Quinn”.

Your sub-contractors existing policy is not currently affected, but Quinn will not offer renewal of that policy.  We would suggest that your sub-contractor  establishs alternative insurance cover  in good time prior to their renewal date.

You should obtain full documentary evidence of your sub-contractors alternative Insurance arrangements prior to expiry of their current Quinn policy, to ensure that you continue to comply with any Bona Fide Sub Contractor (BFSC) Warranty or similar conditions on your policy.

Failure to comply with a BFSC warranty or similar condition could invalidate your own Liability insurance policies.  Please read your policy to check whether such warranties specify limits of Indemnity and/or minimum levels of Insurer Security (Standard & Poors/Moodys/A M Best ratings) on your subcontractors insurances.

Ovals Construction Scheme – ContractaCover (01992 449449) can assist your subcontractor in obtaining alternative cover.

“I am a Plant Owner, hiring out plant to Customers insured with Quinn”.

Your customers policy is currently valid but Quinn will not offer renewal of that policy. You should therefore ensure that you see full evidence of alternative arrangements, prior to the expiry date of the customers current policy.

Whilst we would recommend to our clients that they ensure customers have suitable cover in place if you are a CPA Member our CPA Hire Cover Plus policy will enable you to hire to companies and individuals who do not carry their own insurance.

Ovals Construction Scheme – ContractaCover (01992 449449) can assist your customers in obtaining alternative cover.

For more information please view the summary.