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Professional Indemnity Insurance to become compulsory in Ethiopian construction

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In a move designed to make Ethiopia’s construction industry more accountable, the country’s Council of Ministers is keen to introduce legislation that will make it compulsory for consultants and contractors to take out professional indemnity insurance. Under the proposed regulations, the amount of cover required will depend on the cost and type of each project.

As reported on, at least one leading industry figure has pointed out that whilst such a move would protect the industry over time, the lack of an effective licensing and registration system could lead clients to award contracts to less qualified consultants and contractors able to charge less because they have managed to avoid the cost of professional indemnity insurance.

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