Why Structural Engineers Get Declined for PI Insurance (And How to Get Covered)

Not all engineers are created equal in the eyes of insurers. If you’re a mechanical or electrical engineer, getting professional indemnity insurance is usually straightforward. A few quotes, reasonable premiums, done.

If you’re a structural engineer? Different story.

We recently worked with a structural engineer - sole trader, clean claims history, reasonable revenue - and multiple underwriters declined to even quote. Not because of anything he’d done wrong, but because structural engineering is categorised as high-risk by default. Brady on our team spent over a week and more than 15 calls working through specialist markets to find him cover.

That’s not a one-off. It’s a pattern we see regularly. This article breaks down why structural engineer insurance is harder to place than most disciplines, what catches engineers off guard, and what you can do to get a better outcome.

Quick disclaimer - structural isn’t the only engineering discipline that gets a hard time from insurers. Geotechnical, facade, fire safety, and environmental engineers all face similar challenges. But based on the enquiries we handle and what we see across our portfolio in 2026, structural is consistently one of the toughest to place.

Why do insurers treat structural engineers differently?

Structural engineers carry some of the highest claim severity of any engineering discipline. The reason is straightforward - you’re signing off on whether a building stands up.

If a structural calculation is wrong - a beam is undersized, a connection detail is missed, a retaining wall is under-designed - the consequences aren’t minor. You’re looking at building rectification, potential evacuation, sometimes demolition and rebuild. The dollar figures on structural claims tend to be large.

Compare that with, say, a mechanical engineer designing an HVAC system. If something goes wrong, you’re replacing equipment. Costly, but you’re not pulling a building apart.

Insurers price for claim severity, not just claim frequency. And structural work sits at the high end of that scale.

The cascade problem

Here’s the other thing that makes structural engineering risky from an insurer’s perspective - you sit in the middle of the liability chain.

If a geotechnical assessment gets the soil bearing capacity wrong, the structural engineer designs foundations on bad data. If the structural design is flawed, the builder constructs on a bad design. By the time a building cracks or settles, the claim cascades in both directions.

Structural engineers can get pulled into claims from upstream errors (bad geotech data they relied on) and downstream defects (construction that deviated from their design). That exposure in both directions makes underwriters nervous - and it’s reflected in the premiums and the willingness to quote.

What does a structural engineer PI decline actually look like?

Professional indemnity insurance is cover that protects you against claims of negligence, errors, or omissions in your professional work. For structural engineers, it’s not optional - most project contracts require it, and in NSW, registered design practitioners must hold adequate PI cover under the Design and Building Practitioners Act 2020. Engineers Australia also recommends all practising engineers maintain appropriate PI cover regardless of state requirements.

A decline doesn’t always mean “no.” Sometimes it means the insurer will quote but with exclusions that gut the cover - like excluding multi-storey work or foundation design, which for most structural engineers is the core of what they do.

Other times, they’ll offer a lower limit than you need. One thing we see regularly is structural engineers trying to keep premiums down by reducing their PI limit. We get it - the quotes are high. But if you’re signing off on structural calculations for a multi-storey building, a $1M limit might not cover a single claim.

We’ve had that exact conversation with clients where we’ve had to push back and say: “We can get you this cheaper, but we wouldn’t recommend it.” It’s one of those situations where the savings aren’t worth the risk.

We’ve also seen underwriters push back on higher limits - not because the engineer was a bad risk, but because the dollar exposure on structural work made them uncomfortable at the quoted premium. That tension between what engineers need and what insurers want to offer is something a specialist broker has to navigate.

What catches structural engineers off guard with their PI policy?

A few things come up regularly that engineers don’t expect.

Pre-purchase building inspections aren’t covered

Something that surprises a lot of structural engineers - if you do pre-purchase building inspections on the side, that work likely isn’t covered under a standard PI policy.

We’ve had to flag this multiple times with clients who assumed they were covered for everything they do. Pre-purchase inspections carry a different risk profile (you’re advising buyers on whether to proceed with a purchase, which creates a direct financial loss exposure), and most PI wordings exclude them.

If you do inspection work, it’s worth asking your broker specifically whether it’s covered. Don’t assume.

Starting your own firm is a red flag for insurers

We see a lot of engineers going out on their own - leaving a firm to start their own consultancy. Day one, they need PI insurance, but they’ve never held a policy in their own name.

Insurers see that as a red flag. No claims history to assess, no track record as a principal. It doesn’t mean you can’t get cover, but expect the first year’s premium to be higher than you’d like. The good news is that if you run clean for two to three years, renewals get progressively easier.

If you’re planning to go out on your own, talk to a broker before you leave your current firm. Knowing what to expect on cost and what documentation insurers want makes the transition smoother.

Retroactive date gaps

If you’re switching insurers or taking out PI for the first time, pay attention to the retroactive date on your policy. This determines how far back your cover extends. A gap here means work you did before the policy inception date isn’t covered - even if the claim comes in while the policy is active.

For structural engineers, where defects can take years to manifest, a retroactive date gap is a serious exposure. It’s one of the first things we check when reviewing an engineer’s existing cover.

How much more do structural engineers pay for PI?

There’s no single number because premiums depend on your revenue, limits, claims history, project types, and which insurer you end up with. But as a general guide, structural engineers pay meaningfully more than lower-risk disciplines.

Factor	Lower-risk disciplines (eg mechanical, electrical)	Structural engineering
Insurer appetite	Broad - most mainstream insurers quote	Narrow - many decline or restrict
Typical premiums (sole trader, $1-2M limit)	$800 - $2,500	$2,000 - $3,000+
Typical premiums (established firm, $5M+ limit)	$2,500 - $6,000	$5,000 - $10,000+
Common exclusions	Few	Multi-storey, foundation design, inspections
Startup loading	Minimal	Significant
Claims tail	Shorter	Longer (defects take years to appear)

And that’s assuming you can get quoted - structural is one of the disciplines where underwriter appetite is genuinely limited.

These ranges are indicative based on what we see across our engineering portfolio as at 2026. Your actual premium will depend on your individual business, revenue, claims history, project types, and the underwriting appetite available at the time you apply. Every placement is different. (For more context on why engineering PI is getting more expensive across the board, see our breakdown of why PI costs are rising for engineers.)

The gap widens at higher limits. A mechanical engineer wanting $5M cover might pay a moderate increase over their $2M premium. A structural engineer going from $2M to $5M can see a sharp jump, because the underwriter’s exposure on structural work is much higher at those limits.

What can structural engineers do to get better PI outcomes?

You’re not powerless here. There are practical things you can do to improve your insurability and your premiums.

1. Keep your claims history clean

This sounds obvious, but it’s the single biggest factor. A clean claims run gives you leverage at renewal and makes new insurer submissions easier. If you do have a notification, make sure it’s documented properly - the outcome, the resolution, what you changed. Underwriters want to see that you learned from it.

2. Document your risk management

Peer review processes, quality assurance procedures, professional development - these matter to underwriters. If you have them, make sure your broker knows about them and includes them in submissions. If you don’t have them, consider implementing them. It makes a difference.

3. Get the right limit, not the cheapest quote

We know the premiums are high. But underinsuring to save a few thousand dollars is a false economy if you’re doing work where a single claim could exceed your limit. Talk to your broker about what limit is appropriate for the type of work you’re doing - not just the minimum your current project requires.

4. Work with a broker who knows engineering placements

This is where it actually matters. Sending a standard PI proposal to two mainstream insurers is likely to result in declines for structural work. A broker who knows which underwriters have appetite for structural, who can present the risk properly, and who has access to specialist and Lloyd’s markets can often find cover where others can’t.

We placed cover for a structural engineer who’d been declined by multiple insurers by doing exactly this - preparing a detailed submission, targeting the right underwriters, and being persistent. It took over a week of calls and follow-ups, but we got it done. (You can read more about how we’ve placed cover for declined engineering firms.)

Frequently Asked Questions

Why is structural engineering considered high-risk by insurers?

Structural engineers sign off on load-bearing calculations for buildings. If something goes wrong, the consequences are severe and expensive - building rectification, evacuation, sometimes demolition. Insurers see structural work as carrying higher claim severity than most other engineering disciplines.

Can a structural engineer get PI insurance after being declined?

Yes. A decline from one or two insurers doesn’t mean you’re uninsurable. A specialist broker with access to Lloyd’s syndicates and niche underwriting agencies can often find cover that mainstream insurers won’t offer. The key is a detailed submission and knowing which markets to approach.

Does PI insurance cover pre-purchase building inspections?

Not usually. Most standard PI policies for structural engineers exclude pre-purchase building inspection work. If you do inspections, ask your broker specifically about this - you may need a separate policy or endorsement.

Is PI insurance harder to get as a startup structural engineering firm?

It can be. If you’ve just left a firm and never held a PI policy in your own name, underwriters see that as unknown risk. Premiums in the first year or two will likely be higher, but they come down as you build a clean track record.

How long does it take to place PI for a structural engineer?

It depends on the complexity. Straightforward renewals with clean history can take days. New placements, higher limits, or unusual project types can take weeks. We’ve had structural placements that required over 15 calls across multiple specialist underwriters before we secured terms.

Getting the right structural engineer PI cover

Structural engineering PI is harder to place than most disciplines. That’s just the reality of how insurers view the risk. But harder doesn’t mean impossible - it means you need a broker who understands the market, knows which underwriters to approach, and can present your risk properly.

If you’re a structural engineer struggling to get PI cover - or you’ve been declined and don’t know where to turn - Tank Insurance has experience placing these risks. We deal with engineering insurance across dozens of disciplines, and structural is one we handle regularly.

Need help with structural engineer PI insurance? Reach out to our team at 02 9000 1155 or [email protected] to talk through your situation.

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This is general information only and is based on Tank Insurance’s experience placing professional indemnity cover for structural engineers. It does not take your specific objectives, financial situation, or needs into account. Other engineering disciplines may also face similar challenges in the insurance market. Always read the relevant Product Disclosure Statement (PDS) and seek independent advice before making insurance decisions.