Yes, Professional Indemnity Insurance may respond where an alleged engineering error causes project delay, additional construction costs or other financial loss, subject to the policy wording and the facts of the claim.
Examples can include allegations that an engineering error caused:
- redesign or rework
- demolition and reconstruction
- additional consultant or contractor costs
- extended site or preliminaries costs
- delayed completion
- disruption to later stages of the project
The insurer will still consider whether the claimed loss was caused by the engineer’s professional services and whether the loss falls within the policy.
Contractual penalties, liquidated damages, guarantees and liabilities accepted solely under a contract require separate consideration. They are not automatically covered simply because the underlying issue involved engineering work.
Claims involving delay can also involve several project participants and competing causes, so the engineer should preserve project records and notify the matter promptly rather than attempting to determine liability alone.
