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Professional Indemnity Insurance – What are the benefits of using construction engineering insurance specialists?

Monday 20th February
Professional Indemnity Insurance – What are the benefits of using construction engineering insurance specialists?

Engineering plays a huge role in society, and we all feel the positive effects, from the design of buildings and infrastructure, such as bridges, to cars and the design of our cities. Understanding risk is integral to an engineer’s role, but arranging insurance protection is likely to receive less attention.

Professional indemnity insurance

Whether you are a new firm or already established, Kerry London has specialist knowledge of the PI market for engineers. Engineers face substantial claims because of the expert advice and technical services they provide. Protecting against these risks is not only often a legal and contractual requirement, but it also protects against damaging financial consequences. Allegations of professional negligence can cause irreparable reputational and financial damage to your business.

Professional indemnity (PI) insurance offers valuable peace of mind because it covers the legal and compensation claim costs should an unexpected event happen.

The benefits of insuring with experts in your industry

We are construction specialists. Our Professional Indemnity team has specific expertise in the risks faced by professionals working in the construction market, including engineers. We know the risks associated with Modern Methods of Construction (MMC) and Design and Construct (D&C) projects and can offer cover designed for these professions. We understand that PI costs have become the largest insurance spend for businesses, so we aim to balance comprehensive cover with affordable premiums. We can also help new and established firms arrange cover quickly.

Our service includes:

  • Expert advice on the insurance risks associated with construction engineering
  • Cover tailored to individual business requirements
  • Lloyd’s of London accredited broker providing access to a broader range of insurance
  • Cover from a range of ‘A’ rated insurance companies
  • Risk management insight from our experienced professional indemnity team

Planning your PI insurance renewal – how much cover is enough?

The PI insurance market is notoriously challenging. Fewer insurance providers and rising premiums have made it increasingly difficult for engineers to get cover. The projects you work on will determine your insurance premium.

The following factors will help you decide the level of PI insurance you should have in place:

  • Contract value – The contract’s value should influence the indemnity limit because that figure will affect the level of claims if things go wrong.
  • Contractual obligations – your contracts may specify that you have a certain level of PI insurance for a specific period – even after the contract has expired.
  • Affordability – Assessing the level of insurance vs the cost of premiums is a key consideration.

Use a professional indemnity insurance broker

Seeking advice from an insurance broker who understands the PI market and the construction engineering industry can help your business make a more informed insurance decision. They will get to know your business and explain your cover. A broker can also help you avoid duplication of cover and help keep costs down by ensuring you’re not paying for unnecessary cover.

Contact your broker if you want to renew your insurance; securing the terms you need may take longer than it has in previous years.

Engineers – Key Facts

Engineers are important to society, but they are equally important to the economy, particularly in times of economic uncertainty.

  • Engineering generates an estimated over a quarter (32%) of the country’s economic output
  • More than 8.1 million people – or over a quarter of all UK workers (26%) – are part of the nation’s engineering economy
  • The UK has 729,000 engineering businesses – equivalent to more than one in 10 (13%) of all UK businesses
  • Hotspots of engineering appear all over the UK, not just in major cities: Mid Ulster, West Cumbria, Flintshire and Wrexham, West Lothian, and Aberdeen and Aberdeenshire are the areas where the highest proportion of the local population is employed in engineering

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Kerry London is authorised and regulated by the Financial Conduct Authority. The company is a leading UK independent and Lloyd’s accredited broker, which means that we work with a wide range of niche and major insurers.

This note is not intended to give legal or financial advice, and, accordingly, it should not be relied upon for such or regarded as a comprehensive statement of the law and/or market practice in this area. In preparing this note, we have relied on information sourced from third parties, and we make no claims as to the completeness or accuracy of the information contained herein. You should not act upon information in this bulletin nor determine not to act without first seeking specific legal and/or specialist advice. We and our officers, employees or agents shall not be responsible for any loss whatsoever arising from the recipient’s reliance upon any information we provide herein and exclude liability for the content to the fullest extent permitted by law.

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