Architects and Engineers (PI)
Professional Indemnity Insurance for Architects and Engineers
As an architect or engineer, your advice and calculations have a significant impact on a project’s quality and budget. Professional Indemnity Insurance protects you if an error in your guidance leads to a financial loss for your client and a claim is made against you.
Protecting Your Advisory Work
Professional Indemnity Insurance is essential for businesses providing architectural and engineering consultancy. Even minor errors in design, calculations, or advice can have significant financial consequences and result in claims from clients or other parties.
Errors can include, for example, incorrect sizing, incomplete drawings, or omissions in project documentation. If a financial loss occurs due to a negligent act in your work, the insurance covers the liability the business may incur.
The insurance is relevant for anyone providing consultancy, design, or technical assessments, and it can also cover work carried out by subcontractors, provided there is a written agreement and they hold their own Professional Indemnity Insurance.
For architects and engineers, this insurance is a key part of the company’s risk management, ensuring that claims are handled professionally and efficiently.
Here is an overview of what the insurance typically covers:
The insurance covers your professional liability in the event of a financial loss resulting from errors or omissions in your consultancy, design, or technical calculations. Examples include errors in sizing, incomplete or deficient drawings, insufficient technical specifications, calculation mistakes, or overlooked issues that should have been identified as part of the consultancy or design process.
The coverage also includes reasonable costs necessary to determine whether you are liable in a given case, including expenses for legal and technical assistance.
The insurance also covers the use of subcontractors, provided there is a written agreement in place and the subcontractor holds their own Professional Indemnity Insurance appropriate to the nature of the assignment.
If the company establishes new subsidiaries, these may often be automatically covered, provided they fall within the agreed scope and carry out similar consultancy activities.
Typical Exclusions
- Intentional acts and criminal conduct: Claims arising from intentional or grossly negligent acts, fraud, or other criminal conduct are typically excluded.
- Warranties, schedules, and errors: Claims related to guarantees, price or time commitments, inaccurate estimates, delays, defect rectification, redesign, or correction of errors are generally not covered.
- Intellectual property and contractual liability: Claims arising from infringement of patents, copyrights, or trademarks, as well as liability related to contractor or supplier services, property management, or investment advice, are typically excluded.
- Pollution and building materials: Damages related to pollution, asbestos, PCB, mold, or MgO boards are not covered.
- War, terrorism, and other force majeure events
