When you’re an expert in construction and oversee the development of civil engineering projects, you become sought after for your pearls of wisdom and professional services. Like any profession there are risks that you are exposed to in providing your services. As a professional, considering Professional Indemnity insurance to protect* you and your business from a potential professional negligence claim from a client is a solid investment in your civil engineering business’ future.
Even if you do everything by the book, practicing great caution and care, there is always the chance a client could make a claim against you, alleging negligence in or the failure to deliver your professional services. Even just the associated investigation and defence costs with a claim can be crippling, and potentially enough to send you out of business.
Below we’ll explore Professional Indemnity insurance and how it can apply to your work as a Civil engineer.
Civil Engineering risks
Within the engineering industry there is a large scope around the type of work an engineer specialises in, from geotechnical to structural engineering and many more. As an engineer there is a great deal of responsibility, especially with the nature of the projects that you work on. These projects will involve a duty of care for the network of clients, contractors, other consultants and members of the public involved.
One thing which civil engineers do have in common is they are constantly giving advice, being involved with the design, structure and execution of major works. Like most professionals who make a career of delivering professional advice and services, they are exposed to legal risks of something going wrong and having a claim made against them. This is where Professional Indemnity insurance for Civil Engineers comes into play.
Civil engineers are involved with work that involves the design and construction of structures typically used by the general public.
What is Professional Indemnity insurance?
Professional Indemnity (PI) insurance* is an important form of protection for businesses that provide specialist services or professional advice. It is designed to respond to claims against your business for losses as a result of actual or alleged negligent acts or omissions in the provision of your professional service or advice. Professional Indemnity insurance will also assist with the legal costs associated with responding to or managing claims which are covered by the policy.
What does Professional Indemnity cover?
For Civil Engineers, a breach of duty could include:
- A design fault
- A design omission
- Negligent advice
- Incorrect assessment
- Failure to advise
Any of the above could manifest as a claim(s) involving matters such as
- Financial loss due time delay in project completion
- Property damage / personal injury
- Loss of property value
Even though you ultimately may not be found liable and no compensation payment is made, the cost of defending your case can be costly, something which Professional Indemnity insurance will cover (up to your selected policy limit).
Insurance Policies for Civil Engineers
When it comes to insuring civil engineers, there’s no one size fits all insurance solution because every business is different and no two businesses are the same. Each business has its own unique needs which depend on a variety of factors. Things like the size of your business and the type of risks you are exposed to all have an impact on your business insurance policy.
When arranging the appropriate limit of Professional Indemnity insurance for your civil engineering business there are several factors that need to be considered:
- What are the potential risks (what could go wrong) and what could be the potential cost of a claim if something does go wrong?
- The value of the engineering projects you work on or the value of your services
- Any statutory requirements for your civil engineering profession
- The requirement of any civil engineering professional body or association of which you are a member. Remember, as your business grows it is important to reassess your exposure to risk and increase your level of cover accordingly.
Protecting your business from unwanted challenges is something to consider as part of your business plan. Having the right insurance and levels of cover in place helps safeguard your business financially for the long run.
