An engineering activity breakdown helps Professional Indemnity insurers understand what an engineering business actually does, rather than relying on a broad description such as “engineering consultancy”.
For example, an engineering firm may derive its fees from:
- civil engineering
- structural engineering
- project management
- environmental engineering
- inspections or certification
Different activities can carry different exposures, so the percentage split helps the insurer understand which services make up the largest part of the business and whether any specialist activities require further information.
The percentages will usually be based on professional fees or revenue for a stated period and should generally add up to 100%.
Even a small percentage can be important. An activity that represents only 5% of revenue may still need to be disclosed if it falls outside an insurer’s normal appetite or involves a materially different type of work.
If your engineering activities change significantly during the policy period, speak with your insurance broker to determine whether the insurer should be notified.
