DRAFTING AND DESIGN INSURANCE CASE STUDY
Precast Shop Drawing and BIM Consultancy, PI and PL Placed at Around $13,800 With No Design Responsibility Declared
Shop drawings, reinforcement drawings, panel detailing and BIM models from engineers' and architects' designs, with no engineering design, certification or calculations. Stating that boundary precisely is what the premium turned on.
THE SITUATION
A consultancy that has prepared precast concrete shop drawings, reinforcement drawings, panel detailing, BIM models and construction documentation for close to twenty years asked Tank Insurance to remarket its professional indemnity and public liability. The work is produced from designs supplied by engineers and architects; the consultancy undertakes no engineering design, certification, calculations or design responsibility.
The expiring PI was priced at around $12,000 before GST and statutory charges.
OUR APPROACH
- The no-design-responsibility boundary was written into the submission in the consultancy's own words, because drafting that shades into design is rated as design.
- Four PI markets were approached. One declined. Three quoted: approximately $14,300 for PI and PL combined, around $8,300 base premium before charges for PI only, and $12,700 for PI with public liability available at around $1,100.
- Public liability was also priced standalone with six business pack insurers, at between around $300 and $1,100, so the client could see the cost of packaging it with the PI.
THE CHALLENGES
Shop drawings sit between drafting and engineering, and a market that reads "precast" and "reinforcement" as design will price the risk as structural engineering. The consultancy's two decades of trading and its clear statement that it works from others' designs, without certification or calculation, kept the rating in the drafting band.
THE OUTCOME
Professional indemnity and public liability were placed with Keystone at a combined premium of approximately $13,800 a year.
Final Solution: PI and public liability for an established precast shop drawing consultancy at around $13,800 a year, with the no-design-responsibility position on the record.
This case records one historical outcome; current insurer appetite, premium, timing and terms depend on the complete risk at the time of application.
For the wider buying context, see our drafting and design insurance guide and the CAD operator PI page.
DRAFTING CONSULTANCY QUESTIONS
What this placement answers for other drafting and detailing practices
Do shop drawing consultants need professional indemnity?
How much does PI cost for a drafting consultancy?
Should public liability be packaged with PI or bought separately?
DRAFTING AND DESIGN INSURANCE
Put this placement in context
Case-study results are historical and are not a promise of current pricing, capacity or policy terms. This page is general information only and does not take account of your objectives, financial situation or needs.
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