What claims do engineers face?

Professional Indemnity claims against engineers typically arise from design defects, specification errors, or professional advice that leads to financial loss for a client. The claims environment has intensified in recent years.

The most frequent claims we see include:

• Design Errors — Structural calculations that don't account for site-specific conditions, leading to remediation costs
• Scope Creep — Verbal agreements expanding beyond documented scope, creating liability for work never formally contracted
• Specification Failures — Material or system specifications that underperform in practice, resulting in replacement costs
• Certification Issues — Sign-offs on work that later fails inspection or requires rectification
• Project Delays — Alleged delays caused by incomplete documentation or slow turnaround on variations

Each of these scenarios triggers the claims-made nature of Professional Indemnity insurance — meaning the policy in force when the claim is first made is the policy that responds, regardless of when the work was performed.

When a claim or circumstance arises, the process follows a structured path. Understanding this upfront removes uncertainty when you need to act quickly.

• Step 1: Notification — Contact your broker immediately. Even if you're uncertain whether something constitutes a claim, early notification protects your position. Don't communicate with the claimant beyond acknowledging receipt.
• Step 2: Documentation — Gather all relevant project documentation: contracts, emails, drawings, meeting minutes, and any variation records. The more complete your file, the stronger your position.
• Step 3: Insurer Review — Your broker submits the notification to the insurer. They'll acknowledge within 48 hours and assign a claims handler who may request additional information.
• Step 4: Investigation — The insurer investigates the circumstances. For complex claims, they may appoint solicitors or technical experts to assess liability and quantum.
• Step 5: Resolution — Claims resolve through negotiation, mediation, or (rarely) litigation. Most PI claims settle before court proceedings.

Your broker acts as your advocate throughout the claims process. This is where the relationship built during placement becomes critical.

Specifically, your broker will:

• Prepare the notification — Framing the circumstances accurately and completely to avoid coverage disputes later
• Manage insurer communications — Handling information requests and chasing responses when timelines slip
• Coordinate experts — Working with appointed solicitors or technical assessors to ensure your perspective is represented
• Negotiate resolution — Advocating for settlement terms that protect your ongoing reputation and insurance history

A claim handled poorly can affect your renewal terms for years. A claim handled well demonstrates to future underwriters that you manage risk professionally.