There is no single Professional Indemnity limit suitable for every Environmental Consultant.

The appropriate limit depends on the professional services, contracts, projects and potential severity of a claim.

What should be considered? #

Factors can include:

• Client and tender requirements
• Project size and value
• Industries worked in
• Professional services
• Annual professional fees
• Potential remediation costs
• Potential delay costs
• Third-party reliance on reports
• Contamination and pollution exposure
• Hazardous materials
• Mining, oil and gas or waste-sector work
• Environmental engineering
• Project management
• Previous projects and ongoing claims exposure

The policy structure also matters.

Depending on the policy:

• Defence costs may be inside or outside the limit
• Limits may apply per claim or in the aggregate
• Particular environmental exposures may have sub-limits
• Related claims may be treated as one claim
• Different excesses can apply

A minimum contractual limit should not automatically be treated as the appropriate overall limit for the business.

Professional Indemnity Insurance is generally claims-made, so previous work should also be considered when changing or reducing cover.

Contact our team if you would like us to review a Professional Indemnity limit against your services and project profile.