New engineering disciplines can materially change a firm’s Professional Indemnity exposure and should be reviewed with the insurer.
For example, a business previously providing only civil engineering may later employ structural, geotechnical, fire safety or mechanical engineers.
The insurer may need information about:
- the new discipline
- qualifications and experience
- expected turnover
- project types
- maximum project values
- design responsibilities
- subcontracting
- previous claims
- whether the work involves higher-risk activities
The fact that the new employee is appropriately qualified does not automatically mean the existing PI policy covers the new activity.
Professional Indemnity policies are underwritten based on the professional services disclosed to the insurer.
The new discipline should therefore be discussed with the insurer or broker before it becomes a material part of the firm’s work.
