Engineers are often engaged directly by builders or contractors, particularly on design-and-construct projects.
This can affect Professional Indemnity underwriting because the contractual relationship and allocation of responsibility may differ from a traditional consultant-to-client engagement.
Insurers may consider:
- the type of builder or contractor
- the engineer’s scope of work
- design responsibility
- project values
- contractual indemnities
- liability caps
- fitness-for-purpose requirements
- responsibility for subcontracted consultants
Claims can also involve allegations relating to delays, additional construction costs or coordination with other trades and consultants.
Working for builders or contractors is not unusual or automatically difficult to insure. The key issue is understanding what responsibility the engineer has accepted under the contract.
