Engineers Professional Indemnity

There are huge risks associated with the engineering profession, across the wide range of disciplines. If you’re accused of getting something wrong in your services or advice that has caused your client or a third party loss, the consequences can be far-reaching. You could face extremely expensive legal and compensation costs without insurance in place. 

The profession’s regulator, the Engineering Council, recommends holding PII for your liabilities where appropriate, though it’s not compulsory. You are likely to need a minimum level of PI cover for some client contracts, along with public liability insurance. 

We place engineers’ PI cover from £500 a year (plus insurance premium tax), but the premium you’re offered depends on a few factors. Insurers will ask about your firm’s annual turnover, along with other considerations, including:

• Your specialism or industry type: Some engineering disciplines are seen as less risky to insure than others.
• Size, value and complexity of projects you take on: Large-scale, complex work can attract higher premiums.
• Your claims history: Having no recent claims can work in your favour. 
• The level of cover you need: A higher level of cover typically means higher premiums.

A competitive premium can be important, but the cover also needs to be comprehensive enough for your firm’s risks.

We can place cover for engineers who do some of their work outside of the UK. Make sure you tell us about any overseas work, and the percentage fees as a proportion of your income. 

Be aware that PII policies usually have geographical and jurisdiction limits on where cover can be provided. 

We place cover for a spectrum of engineering disciplines and specialties, including civil, mechanical, electrical, structural engineering, and geotech. Each has its own often complex risks and duties, which we’ll design your cover around.

Whether you're a self-employed consulting engineer or in-house, your PII needs to reflect the work you do and the nature of your business.
 

As well as PII, engineers insurance can protect you from a range of other risks. You could consider the following covers, for example:

• Public liability insurance covers legal and compensation costs if a member of the public is injured, or their property is damaged, due to your business. 
• Cyber insurance helps mitigate the financial risks of cyberthreats, such as ransomware and phishing, which attempt to access clients’ or your data and disrupt operations.
• Directors' and officers' liability offers protection for senior managers, including directors, officers and partners, for claims of individual wrongdoing.
• Office and contents insurance can cover your workplace, your belongings and equipment both at your premises and on site or at meetings.
• Employers’ liability insurance is a legal requirement if you employ anyone, with only a few exceptions. It applies even if staff are temporary, voluntary, trainees or part-time. This pays the cost of claims if someone you employ has a work-related illness or injury.  

But this isn’t an exclusive list, and not every engineer will want or need every type of cover. Our brokers can help build a package around the everyday risks you face, in line with your budget.