Engineers policy cover
As none of the Engineering professional bodies lay down requirements for Engineers Professional Indemnity, cover can vary widely between insurers and this is one of the reasons why it is essential for Engineers to use the services of an Independent broker such as PI Expert to obtain cover.
Often an Engineers Professional Indemnity Wordings will be on a civil liability basis, often similar to that offered to architects. If the firm is unqualified, or qualified only to a limited extent, cover may only be offered on a more basic miscellaneous errors and omissions wording.
Usually the limit of indemnity on an Engineers wording will be “any one claim” with legal costs payable in addition. Sometimes the cover will be limited in the aggregate. The excess will normally not apply to insurers’ costs and expenses but some insurers will apply the excess to all claims.
Collateral warranties are normally covered by the policy, however it is important to always check with your insurer before agreeing to these to ensure that the work that you are agreeing to do is covered by your policy and that the collateral warranty is not too onerous as insurers will exclude onerous collateral warranties.
Policy cover normally excludes claims in respect of Death or bodily injury, Loss or damage to physical property (but fidelity and loss of documents are covered), Punitive or exemplary damages (many policies have no geographical or jurisdiction limitations), Nuclear risks, Claims and circumstances known at inception of the cover, Acting as contractor.