Professional indemnity insurance for engineers
Professional indemnity insurance for engineers in one easy package. Pick one (if your turnover's under £50,000) or build your own.
An easy calculation
Engineers face as many risks are there are specialist areas. Lots, in other words.
Allegations of professional negligence hurt, and defending yourself takes time and money. These two things are rarely inexhaustible.
Thankfully, engineering insurance frees you up to specialise in the most important thing – running your business.
This is a relatively easy one to answer. If only because of the very obvious – and very expensive – potential risks of what you do. Unless you like sleepless nights, the need for a little self-preservation is manifest.
But that's only the half of it. Engineers' professional indemnity insurance is much more than a ticked box.
Its real value lies in what it gives you. Protection, obviously, but you also get legal expertise, deep pockets, and a reputation rescuer too. Better still, it gives you the confidence and freedom to do what you best – running your business.
What could be better than that?
The more complicated, technical, and large-scale your projects, the more time and money they'll take to fix if something goes wrong. With that in mind, buy as much cover as you can reasonably afford.
If you're not keen on blowing the budget, you'll have to more closely consider what and your business does, and where its biggest risks are. So, think about the nature of your work, who your clients are, how much their projects are worth and how much they're paying you. Think about what could go wrong, worst-case scenario. What’s the most expensive mistake you could make?
Defending a claim takes time and money. Your insurance will pick up the tab, but only as far as your level of cover allows. Factor in rectification and compensation costs of, potentially, millions and you'll see why it pays to be pessimistic.
It’s a tricky one to get right. Have a read of this guide or call us if you need more help.
Different insurers cover different things so it's hard to be definitive.
That said, engineering involving such things as oil and gas, nuclear power, sewerage, tunnels, mines, bridges, harbours and swimming pools all make an insurer ask more questions. Some will draw the line at these completely.
At the other end of the scale, electrical, HVAC, civil, structural, mechanical and soil engineering shouldn’t cause any problems. Ditto project management if you get involved in that.
No. But it’s certainly a good idea.
You’ll find that most clients ask you to have it so, often, the decision is made for you.
And it doesn’t make a difference if you’re chartered – the Engineering Council doesn’t stipulate you have to have it.
Public liability insurance is for when you go out and about on business, or have visitors to your office. It’s for claims of physical damage to property and people. Useful if you’re clumsy.
Employers’ liability insurance covers your business if an employee sues it for damages. Claims are usually because they’ve suffered injuries and illnesses as a consequence of working for you. It’s a legal requirement for UK businesses with employees.
Office and property insurance covers the things in your office (furniture, plants, fixed IT equipment etc) and portable insurance covers gadgets and technical equipment away from the office (laptops, tablets, projectors etc). If you’re not sure it’s worth insuring, add it all up – it’s probably worth more than you think.
Business interruption insurance means you can still work when your office is out of action. Be it flood, fire or flea infestation, you’re covered for the costs of setting up elsewhere and for any lost revenue in that time.
Directors’ and officers’ insurance covers your company bosses. Anyone from regulators to shareholders to competitors can accuse you of not running a business with due care. Worse, directors are personally liable for their actions. The good thing is this insurance covers your defence costs and any compensation you have to pay. So you can put away your chequebook.
Glad you asked.
The simple answer is: we know what we're doing. Professional insurance is all we do so we know what you need, even if you don't.
We also know that buying insurance can be, well, a bit of a pain. So we make sure getting yours is quick and hassle-free.
We do all that while treating you like a human being, too. You won't find a call centre here. Or a phone menu. And we've banned nonsense insurance jargon.
Plus, every insurance-related question you can think of is answered in our School of Risk, and you'll get our quarterly risk advice email – 'The Waggle' – to help you avoid problems in the first place.
If you're after a second opinion, have a look at our customers' feedback. They're the ones you should really listen to.
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