Maximum project values help Professional Indemnity insurers understand the scale and potential consequences of the engineering work being undertaken.
Insurers may consider:
- the maximum project value
- typical project values
- the engineer’s professional fees
- the services provided
- whether the engineer is responsible for the whole project or only part of it
- the type and complexity of the project
Project value and professional fees are not the same thing.
An engineer may earn relatively modest fees while providing services on a very large project. Both figures can therefore be relevant to an insurer.
A large project does not automatically mean a higher premium or that an insurer will not provide cover. The engineer’s scope, experience, discipline, contractual responsibilities and risk controls will also form part of the assessment.
If your business starts taking on projects substantially larger than those previously disclosed, it is worth discussing this with your broker.
