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What claims do engineers face?

Engineers primarily face claims related to negligent advice, design errors, and financial loss due to project delays.

Below, we elaborate on these common claims, outline the immediate steps to take, and explain how your an insurance broker like Tank Insurance can manage the entire process to minimise disruption to your practice.

What are some common professional indemnity claims for engineers?

Design Errors & Omissions

The most common claim. Allegations that a structural calculation, specification, or drawing contained a negligent error leading to failure, damage, or expensive rework (e.g., incorrect load-bearing calculations or material specification).

Construction Delays/Financial Loss

Claims that the engineer's failure to provide timely documentation, approvals, or revised specifications caused project delays, resulting in financial loss for the client.

Inadequate Certification

Negligent certification or sign-off on work that did not meet regulatory standards or project specifications.

Breach of Professional Duty

Claims related to poor work documentation, failure to live up to contractual obligations, or inadequate communication leading to client loss.

Scope Creep / Unmet Specifications

Disputes where the client claims the final output did not meet their expectations due to alleged poor communication or failure to adhere to the scope.

What Are the Immediate Steps to Take When Notified of a Claim?

This outlines the procedural steps required to activate your Professional Indemnity policy and ensure your coverage remains valid

1

Stop, Do Not Respond

Do not ignore the notification (Letter of Demand, summons, or client complaint). More importantly, do not admit liability or offer any rectification or payment.
2

Gather All Documentation

Collect all relevant paperwork immediately, including the original contract, your final design or advice, project communication logs, and the specific complaint or Letter of Demand.
3

Notify Us Immediately

Call your broker straight away. Professional Indemnity policies are “Claims Made”, which means they must be reported to the insurer during the policy period when you first became aware of the issue. Delay can jeopardise cover.
4

Forward Everything

Send all documentation directly to your broker. Do not communicate with the claimant or their lawyers unless specifically instructed by your insurer’s legal team.

How Tank Insurance Manages the Claims Process

We take the burden of claims management off your firm so you can stay focused on delivering projects.

First Point of Contact

We gather all the necessary details and act as your primary liaison with the insurer, so you deal directly with us while we manage the complexity of the insurance market.

Specialist Connection

Engineers’ insurance is handled by specialist underwriters and their legal teams. We coordinate communication and documentation between you and the insurer’s claims and legal specialists.

Claims Advocacy

We advocate for your position and negotiate with insurers to help ensure the policy responds correctly and covers your defence costs.

Managing the Load

We coordinate the moving parts and handle administrative tasks so the claims process runs smoothly while your team continues working on projects.

Essential Claims and Coverage Notes

What is the “Duty to Notify”?

Your policy requires you to notify your insurer or broker as soon as you become aware of any circumstance that might lead to a claim, not just when you receive a formal Letter of Demand. If in doubt, notify.

Why is Continuous Cover Critical?

PI operates on a “Claims Made” basis. You must maintain continuous coverage, even if you stop working (Run-Off Cover), because claims can arise years after the project is complete.