Emerging engineering activities can change a firm’s Professional Indemnity exposure and may need to be disclosed to the insurer.
If an engineering firm starts providing a materially different service, the insurer may need additional information to understand the new exposure.
Examples can include:
- new engineering disciplines
- renewable energy technologies
- battery or energy storage projects
- autonomous systems
- advanced manufacturing
- specialist certification
- new construction methods
- work in unfamiliar jurisdictions
A new activity does not automatically create an insurance problem.
The important issue is whether it falls within the professional services already disclosed and accepted by the insurer.
If your business is moving into a materially different area of engineering, it is worth discussing this with your broker before the work becomes a significant part of the practice.
As engineering practice evolves, firms should also consider whether they have the competence and experience required for new areas of work. Engineers Australia’s National Competency Standard provides broader professional guidance on engineering competence.
