Professional Indemnity Insurance is designed to protect engineering businesses against claims arising from the professional services they provide.

Depending on the policy wording and circumstances of the claim, allegations may involve:

• Errors in calculations or design specifications
• Incorrect drawings, reports or documentation
• Negligent professional advice
• Certification or inspection errors
• Failure to identify or communicate an important risk
• Incorrect specifications
• Alleged non-compliance with relevant standards
• Project delays caused by professional errors or omissions
• Failure to adequately coordinate with other consultants
• Allegations that professional services did not meet the agreed scope

Professional Indemnity Insurance can also provide an important defence benefit.

Even where an allegation is ultimately unsuccessful, responding to a claim can involve legal, expert and investigation costs. Subject to the policy terms and conditions, Professional Indemnity Insurance may provide cover for defence costs as well as damages or settlements for insured claims.

Not every professional dispute will automatically be covered. Policies contain exclusions, conditions, excesses and other limitations that can affect how a claim responds.

If you would like help reviewing the Professional Indemnity Insurance applying to your engineering business, contact our team.